NZD/USD: The next major resistance at 0.5905 is likely out of reach for now – UOB Group
The next major resistance for NZD/USD at 0.5905 is likely out of reach for now. In the longer run, NZD is expected to strengthen; the level to watch is 0.5905, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
NZD is expected to strengthen
24-HOUR VIEW: "We indicated last Friday that 'further NZD strength is not ruled out', but we pointed out, 'it may not be able to maintain a foothold above 0.5785.' We were correct on the first count, but incorrect on the second, as NZD surged to a high of 0.5839. Strong momentum suggests NZD could rise above 0.5855 today. The next major resistance at 0.5905 is likely out of reach for now. Support levels are at 0.5800 and 0.5770."
1-3 WEEKS VIEW: "NZD rose sharply last Thursday. On Friday (11 Apr), when it was at 0.5750, we stated that 'the increase in momentum is not enough to indicate a sustained advance.' We added that NZD 'must first close above 0.5785 before a move to 0.5855 can be expected, and the likelihood of NZD closing above 0.5785 will remain intact as long as 0.5660 is not breached.' We underestimated the momentum as NZD closed decisively above 0.5785 at 0.5824, up by 1.45%. We continue to expect NZD strength from here, and the level to watch is 0.5905. On the downside, the ‘strong support’ level has moved higher to 0.5740 from 0.5660."
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FXStreet Insights Team
FXStreet
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