NZD/USD: Immediate resistance is at 0.5980

As long as 0.5980 is not breached, the New Zealand Dollar (NZD) could decline further. The significant support at 0.5900 is highly unlikely to come under threat, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann.

NZD is trading towards significant support at 0.5900

24-HOUR VIEW: “Yesterday, we held the view that ‘as long as 0.6005 (minor resistance is at 0.5995) is not breached, NZD could decline further.’ We were also of the view that ‘any decline is unlikely to reach 0.5940.’ Our view was not wrong, as NZD fell, reaching a low of 0.5951. While conditions are severely oversold, the weakness in NZD has not stabilised. Today, as long as 0.5980 is not breached (minor resistance is at 0.5965), NZD could weaken further. Given the oversold conditions, the significant support level at 0.5900 is highly unlikely to come under threat. There is another support level at 0.5925.”

1-3 WEEKS VIEW: “Yesterday (23 Jul, spot at 0.5980), we highlighted that ‘while the impulsive downward momentum suggests further NZD weakness, conditions are severely oversold, and it remains to be seen if NZD can break the next support at 0.5940.’ We did not quite expect the continuing sharp decline, as NZD fell to a low of 0.5951. Momentum remains strong, and a breach of 0.5940 will not be surprising. The next level to watch is 0.5900. Should NZD break above 0.6000 (‘strong resistance’ level was at 0.6030 yesterday), it would mean that the weakness that started in the middle of last week (as annotated in the chart below) has stabilised.”

Share: Feed news

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.