New Zealand Greenback (NZD) may weaken additional in opposition to US Greenback (USD), but it surely won’t be capable of break clearly under 0.5870. Within the longer run, bias for NZD is tilted to the draw back towards 0.5870, probably reaching 0.5835, UOB Group’s FX analysts Quek Ser Leang and Peter Chia notice.
Bias for NZD is tilted to the draw back towards 0.5870
24-HOUR VIEW: “After NZD dropped sharply to 0.5936 two days in the past, we indicated that ‘the sharp drop seems to be overdone, however NZD may decline to 0.5920 earlier than stabilisation is probably going.’ We additionally indicated that ‘the main assist at 0.5890 is unlikely to become visible.’ NZD fell greater than anticipated to 0.5901, and the corresponding improve in momentum suggests additional weak spot right this moment. Nevertheless, on condition that circumstances are already oversold, NZD won’t be capable of break clearly under 0.5870. Resistance ranges are at 0.5920 and 0.5940.”
1-3 WEEKS VIEW: “Yesterday (08 Might, spot at 0.5945), we indicated that NZD ‘remains to be range-trading, doubtless between 0.5890 and 0.6030.’ We didn’t anticipate the next drop to 0.5901. There was a slight improve in momentum, indicating the bias for NZD is tilted to the draw back towards 0.5870, probably reaching 0.5835. The downward bias will stay intact supplied that the ‘sturdy resistance’ stage, at present at 0.5960 isn’t breached.”
