Threat stays on the upside, however with no clear enhance in momentum, New Zealand Greenback (NZD) might not be capable to break above 0.6080 in opposition to US Greenback (USD). Within the longer run, upward momentum stays largely unchanged, however there’s a probability for NZD to check 0.6095, UOB Group’s FX analysts Quek Ser Leang and Peter Chia notice.
Upward momentum stays largely unchanged
24-HOUR VIEW: “The next are excerpts from our replace yesterday: ‘NZD might edge greater, however barring a sudden surge in momentum, any advance is unlikely to threaten this week’s excessive, close to 0.6055.’ The advance exceeded our expectations, as as an alternative of edging greater, NZD jumped to a excessive of 0.6080. It pulled again from the excessive to shut at 0.6038 (+0.17%). The danger stays on the upside at this time, however with no clear enhance in upward momentum, NZD might not be capable to break above 0.6080. The numerous resistance at 0.6095 is unlikely to come back underneath risk. Help is at 0.6025, adopted by 0.6005.”
1-3 WEEKS VIEW: “Three days in the past (03 Jun, spot at 0.6040), we indicated that ‘fast buildup in upward momentum signifies additional NZD power, and the extent to watch is 0.6095.’ Yesterday, NZD rose to 0.6080. Upward momentum stays largely unchanged, however so long as 0.5985 (‘robust help’ degree beforehand at 0.5970) just isn’t breached, there’s a probability for NZD to check 0.6095.”
