NZD/USD: Major support at 0.6040 is out of reach – UOB Group
|The New Zealand Dollar (NZD) could pullback further, but slowdown in momentum suggests the major support at 0.6040 could be out of reach, UOB Group analysts note.
A break above 0.6135 to turn momentum upwards
24-HOUR VIEW: “We expected NZD to trade in a sideways range of 0.6080/0.6120 yesterday. However, the price action did not quite pan out as we expected. NZD rose to 0.6110 before staging a surprisingly sharp pullback to a low of 0.6066. NZD closed at 0.6075 (-0.25%). Today, NZD could continue to pullback. Given the current mild downward momentum, any decline is unlikely to reach the major support at 0.6040. Resistance levels are at 0.6085 and 0.6105.”
1-3 WEEKS VIEW: “Our update from yesterday (01 Jul, spot at 0.6095) still stands. As highlighted, while there is still room for NZD to continue to weaken, the slowdown in momentum suggests 0.6040 could be out of reach this time. Conversely, if NZD breaks above 0.6135 (no change in ‘strong resistance’ level), it would mean that the weakness in NZD that started in the middle of last month has ended.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.