There’s a probability for NZD to check 0.5885 earlier than stabilization might be anticipated; the subsequent main assist at 0.5845 is unlikely to come into sight. Within the longer run, NZD is anticipated to say no additional to 0.5885, doubtlessly reaching 0.5845, UOB Group’s FX analysts Quek Ser Leang and Peter Chia notice.
NZD is anticipated to say no additional to 0.5885
24-HOUR VIEW: “We didn’t anticipate NZD to drop sharply to a low of 0.5889 yesterday, as we have been anticipating sideways buying and selling. Whereas situations are oversold, there’s a probability for NZD to check final month’s low, close to 0.5885, earlier than stabilisation might be anticipated. A sustained break beneath this stage is unlikely, and the subsequent main assist at 0.5845 can be unlikely to come into sight. Resistance is at 0.5920; a breach of 0.5935 would point out that the weak spot is stabilizing.”
1-3 WEEKS VIEW: “Two days in the past (29 Jul, spot at 0.5970), we famous that the current “upward momentum has pale.” We additionally identified that ‘there was a tentative improve in downward momentum, and this will likely result in NZD declining to 0.5940.’ We underestimated the energy of the buildup in momentum, as NZD plunged to a low of 0.5889 yesterday. From right here, we anticipate NZD to say no additional to 0.5885, doubtlessly reaching 0.5845. The weak spot is undamaged so long as NZD holds beneath the ‘robust resistance’ at 0.5960 (stage was at 0.6005 yesterday).”
