New Zealand Greenback (NZD) is more likely to commerce in a variety between 0.6075 and 0.6120 towards US Greenback (USD). Within the longer run, NZD may proceed to strengthen, however it should first break and maintain above 0.6120, UOB Group’s FX analysts Quek Ser Leang and Peter Chia notice.
NZD may proceed to strengthen
24-HOUR VIEW: “Two days in the past, NZD soared to a excessive of 0.6090. Yesterday, when NZD was at 0.6090, we said that ‘whereas NZD may proceed to rise, deeply overbought situations counsel that the following resistance at 0.6120 is probably going out of attain for now.’ Our directional name was appropriate,
however NZD rose to a excessive of 0.6120 earlier than pulling again. Situations stay overbought. This, mixed with slowing momentum, suggests NZD is more likely to commerce in a variety at the moment, almost certainly between 0.6075 and 0.6120.”
1-3 WEEKS VIEW: “Yesterday (01 Jul, spot at 0.6090), we highlighted that ‘after breaking clearly above 0.6095, NZD may strengthen additional towards 0.6120.’ We weren’t incorrect, however we didn’t fairly count on NZD to check 0.6120 so quickly. Whereas NZD could proceed to rise, it should break and maintain above 0.6120 earlier than a transfer to 0.6145 will be anticipated. On the draw back, ought to NZD break under 0.6055 (‘robust assist’ stage beforehand at 0.6040), it will imply that the NZD energy from late final week has run its course.”
