NZD/USD stays side-lined between 0.6540-0.6710 – UOB

Pablo Piovano FXStreet

NZD/USD is expected to keep the consolidative fashion unchanged for the time being, likely between 0.6540 and 0.6710, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “Yesterday, we held the view that NZD ‘could test the strong support at 0.6600’ but ‘a sustained decline below this level is unlikely’. NZD subsequently dropped to a low of 0.6575 before rebounding. While downward pressure is not strong, there is scope for NZD to retest the 0.6575 level before a more sustained recovery can be expected. Resistance is at 0.6630 followed by 0.6650.”

Next 1-3 weeks: “We highlighted yesterday (03 Aug, spot at 0.6620) that ‘a break of 0.6600 would indicate that NZD has moved into a consolidation phase’. NZD subsequently dropped to 0.6575 before settling on a soft note at 0.6613 (-0.24%). For the next 1 to 2 weeks, NZD is likely to trade sideways, expected to be between 0.6540 and 0.6710. Looking forward, a clear break of 0.6540 would suggest the start of a deeper pullback in NZD.”

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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