NZD/USD: The next support emerges at 0.6270 – UOB

In light of the recent price action, the next move in NZD/USD could be a test of the 0.6270 region, suggested FX Strategists at UOB Group.

Key Quotes

“We expected NZD to ‘edge downward towards 0.6365’ yesterday but it sliced through the support and plummeted to a low of 0.6325. While severely oversold, the decline in NZD has scope to probe the 0.6300 first before stabilization can be expected. Resistance is at 0.6350 but only a move above 0.6365 would indicate the current downward pressure has eased.”

Next 1-3 weeks; “Our view from Wednesday (19 Feb, spot at 0.6390) wherein NZD ‘has to close below the solid 0.6375 support or the next level at 0.6325 may not come into the picture’ became outdated quickly as NZD plunged and touched 0.6325 yesterday (20 Feb). The outsized drop of - 0.83% (NY close of 0.6332) suggests further NZD weakness is likely. The next support is at 0.6270. On the upside, the ‘strong resistance’ at 0.6380 is unlikely to come under threat, at least for the next few days.”

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Editors’ Picks

GBP/USD attempts recovery amid as Johnson's condition is in focus

GBP/USD is trading above 1.23 as the focus remains on PM Johnson's condition. The 55-year old is in intensive care, receiving oxygen and Foreign Secretary Raab is in charge.


EUR/USD rises toward 1.09 amid a better market mood

EUR/USD is trading closer to 1.09, up amid falling coronavirus cases in the old continent and as German industrial output beat expectations with 0.3% for February. New US fiscal stimulus is also eyed.


Crypto starship starts the engines, pointing beyond limits

The bullish scenarios are fulfilled and bring the Top 3 to the launch pad. Ether's dominance shoots up and improves by more than 10% in a single day. The movement shows strong potential not seen since the 2017 bump.

Read more

Gold corrects from multi-week tops, slides further below $1650 level

Gold finally broke down of its Asian session consolidation phase and dropped to fresh session lows, around the $1645 region in the last hour.

Gold News

WTI probes $30.00 following latest recovery moves, eyes on API

WTI benefits from recent risk-on, upbeat comments from US President Trump. Oil traders may now wait for the private weekly inventory data from the American Petroleum Institute (API), prior 10.485M, for fresh direction.

Oil News