NZD/USD: NZD must hold above 0.6040 to continue rising – UOB Group
While New Zealand Dollar (NZD) could continue to rise against US Dollar (USD), deeply overbought conditions suggest that 0.6120 is likely out of reach for now. In the longer run, the clear break above 0.6095 is likely to lead to further NZD strength toward 0.6120, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
To sustain the renewed momentum, NZD must hold above 0.6040
24-HOUR VIEW: "The sharp rise that sent NZD to a high of 0.6099 was surprising (we were expecting consolidation). While NZD could continue to rise, deeply overbought conditions suggest that the next resistance at 0.6120 is likely out of reach for now. On the downside, support levels are at 0.6075 and 0.6060."
1-3 WEEKS VIEW: "In our most recent narrative from last Thursday (26 Jun, spot at 0.6055), we indicated that NZD 'is likely to test the 0.6090 level, but it is too early to determine if it can break clearly above this level.' Yesterday, NZD broke above 0.6090 and reached a high of 0.6099. The clear break above 0.6095 is likely to lead to further NZD strength toward 0.6120. To sustain the renewed momentum, NZD must hold above the ‘strong support’ at 0.6040, level previously at 0.6000."
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FXStreet Insights Team
FXStreet
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