NZD/USD: Upward momentum is building again – UOB Group
Increase in momentum suggests potential for NZD to continue to advance; it is unclear whether it can break and remain above the 0.5765/0.5775 resistance zone. In the longer run, upward momentum is building again; NZD must break and remain above the 0.5765/0.5775 resistance zone before a sustained rise is likely, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
NZD to continue to advance
24-HOUR VIEW: "Our expectation for NZD to trade in a range last Friday was incorrect. Instead of trading in a range, NZD soared to a high of 0.5755, closing on a strong note at 0.5750 (+0.93%). The increase in momentum suggests there is potential for NZD to continue to advance. However, it is unclear for now whether NZD break and remain above the 0.6765/0.5775 resistance zone. To sustain the momentum, NZD must remain above 0.5720 (minor support is at 0.5735)."
1-3 WEEKS VIEW: "Last Friday (14 Mar), when NZD was at 0.5700, we indicated that 'the current price movements are likely part of a range trading phase, most likely between 0.5640 and 0.5765.' We did not expect the subsequent strong advance in NZD that reached 0.5755. Upward momentum is building again, but NZD must break and remain above the 0.5765/0.5775 resistance zone before a sustained rise is likely. The likelihood of NZD breaking clearly above the resistance zone will remain intact as long as 0.5695 is not breached in the next few days."
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FXStreet Insights Team
FXStreet
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