NZD/USD: Unlikely to break the strong support level at 0.5660 – UOB Group
New Zealand Dollar (NZD) is likely to edge lower vs US Dollar (USD), but it is unlikely to break the strong support level at 0.5660. In the longer run, there has been no further increase in upward momentum; a break of 0.5660 would mean that the recovery is not reaching 0.5775, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
No further increase in upward momentum
24-HOUR VIEW: "We noted a slight increase in downward momentum yesterday. However, we indicated that 'this is likely to lead to a lower range of 0.5685/0.5730 instead of a sustained decline.' Our view did not turn out as NZD traded between 0.5691 and 0.5742. There has been a slight increase in downward momentum. Today, NZD is likely to edge lower, but it is unlikely to break the strong support ’level at 0.5660 (there is another support level at 0.5680). On the upside, resistance levels are at 0.5715 and 0.5730."
1-3 WEEKS VIEW: "Last Thursday (06 Mar, spot at 0.5720), we highlighted that the 'current price movements are likely part of a recovery phase that could reach 0.5775.' NZD subsequently rose to 0.5760 and then pulled back. Yesterday (10 Mar, spot at 0.5710), we indicated that 'There has been no further increase in momentum and should NZD break below 0.5660 (‘strong support’ level), it would mean that 0.5775 is out of reach this time round. There is no change in our view."
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FXStreet Insights Team
FXStreet
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