Situations stay overbought; as an alternative of rising, New Zealand Greenback (NZD) is extra prone to commerce in a spread between 0.5960 and 0.6020 vs US Greenback (USD). Within the longer run, for a sustained advance, NZD should break and maintain above 0.6030, UOB Group’s FX analysts Quek Ser Leang and Peter Chia notice.
Situations stay overbought
24-HOUR VIEW: “Whereas we anticipated NZD to ‘rise additional’ yesterday, we famous that ‘because of the deeply overbought situations, any advance is unlikely to achieve the most important resistance degree at 0.6030.’ Nonetheless, NZD examined the 0.6030 degree, touching 0.6031 earlier than easing. Given the nonetheless overbought situations, NZD is unlikely to rise additional. At the moment, NZD is extra prone to commerce in a spread, most likely between 0.5960 and 0.6020.”
1-3 WEEKS VIEW: “Yesterday, 26 Might, when NZD was at 0.5990, we famous that ‘Whereas there was a rise in momentum, it’s not sufficient to point a sustained rise simply but.’ We added, ‘for a sustained advance, NZD should break and maintain above the numerous resistance at 0.6030.’ NZD subsequently rose to 0.6031 earlier than easing. The situation for a decisive break above 0.6030 isn’t met. Nonetheless, the probability of NZD breaking clearly above 0.6030 will stay intact so long as 0.5920 (no change in ‘sturdy help’ degree) holds.”
