NZD/USD: Unlikely to reach the major support at 0.5690 today – UOB Group

New Zealand Dolla (NZD) is likely to decline further but is unlikely to reach the major support at 0.5690 today (there is another support level at 0.5720). In the longer run, outlook for NZD has shifted to negative; the level to watch is 0.5690, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

The level to watch is 0.5690

24-HOUR VIEW: "We indicated yesterday that NZD 'is likely to range-trade between 0.5760 and 0.5805.' We were incorrect, as after testing the top of our expected range (high was 0.5806), NZD plunged to a low of 0.5735. The rapid increase in downward momentum is likely to lead to further declines. That said, we do not expect the major support at 0.5690 to come into view today. Note that there is another rather strong support level at 0.5720. Resistance levels are at 0.5765 and 0.5780."

1-3 WEEKS VIEW: "Two days ago (08 Oct, spot at 0.5750), we highlighted that 'the outlook for NZD has shifted to negative, and the level to watch is 0.5690.' We will continue to hold the same view as long as the ‘strong resistance’ at 0.5810 (level was at 0.5820 yesterday) continues to hold."