NZD/USD: The pair trades towards 0.6180 – UOB Group
|Room for NZD to rise further. The resistance level at 0.6180 is likely out of reach for now, with a chance to reach 0.6200, analysts at UOB Group note.
A slight chance to rise to 0.6200
24-HOUR VIEW: “We highlighted last Friday that ‘there is a chance for NZD to retest the 0.6130 level.’ We also highlighted that ‘the major resistance level at 0.6150 is unlikely to come into view.’ NZD rose more than expected, reaching a high of 0.6149 before closing at 0.6146 (+0.47%). While the advance is approaching overbought levels, there is room for NZD to rise, even though the next resistance level at 0.6180 is likely out of reach for now. To keep the momentum going, NZD must not break below 0.6115, with minor support at 0.6130.”
1-3 WEEKS VIEW: “Our latest narrative was from last Thursday (04 Jul, spot at 0.6105), wherein ‘the recent weakness has stabilised, and the current price movements are likely part of a recovery that has potential to extend to 0.6150.’ We pointed out that ‘a breach of 0.6070 would indicate that NZD is not recovering further.’ Last Friday, NZD rose to a high of 0.6149. Upward momentum has increased further, and the risk is for further NZD strength. The levels to watch are 0.6180 and 0.6200. On the downside, the ‘strong support’ level has moved higher to 0.6100 from 0.6070.”
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