Slight enhance in momentum signifies New Zealand Greenback (NZD) is prone to edge decrease towards US Greenback (USD); any decline is unlikely to succeed in the most important help at 0.5950. Within the longer run, value motion signifies that additional NZD weak spot is probably going; the extent to observe is 0.5950, UOB Group’s FX analysts Quek Ser Leang and Peter Chia word.
Additional NZD weak spot is probably going
24-HOUR VIEW: “NZD fell to a low of 0.5990 two days in the past earlier than rebounding. Yesterday, when it was at 0.6015, we indicated that ‘the rebound from oversold situations means that as an alternative of declining, NZD is extra prone to consolidate immediately, in all probability in a variety of 0.5990/0.6030.’ NZD subsequently traded between 0.5980 and 0.6035, a variety wider than anticipated. NZD closed largely unchanged at 0.5998 (-0.07%). There was a slight enhance in downward momentum, and NZD is prone to edge decrease immediately. Nevertheless, any decline is unlikely to succeed in the most important help at 0.5950. The low of 0.5980 from yesterday is predicted to offer help as nicely. On the upside, resistance ranges are at 0.6015 and 0.6030.”
1-3 WEEKS VIEW: “Our replace from yesterday (08 July, spot at 0.6015) stays legitimate. As highlighted, the value motion from earlier this week ‘signifies that additional NZD weak spot is probably going, and the extent to observe is 0.5950.’ We are going to preserve our adverse NZD view so long as 0.6060 (no change in ‘robust resistance’ stage) is just not breached.”
