New Zealand Dollar (NZD) is likely to trade sideways between 0.5735 and 0.5770. In the longer run, boost in momentum suggests the major resistance at 0.5790 is back in sight, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
Major resistance at 0.5790 is back in sight
24-HOUR VIEW: “Last Thursday, NZD surged by 1.02% (0.5763). On Friday, we pointed out that ‘the sharp and swift rise appears overdone, and while there is scope for NZD to rise further, it is unlikely to reach 0.5790.’ NZD subsequently rose to 0.5772 and then eased off. The current price action is likely part of a sideways trading phase, probably between 0.5735 and 0.5770.”
1-3 WEEKS VIEW: “Our update from last Friday (21 Feb, spot at 0.5760) remains valid. As indicated, ‘the boost in upward momentum suggests the major resistance level is back in sight.’ Overall, only a breach of 0.5715 (no change in ‘strong support’ level) would mean that the advance from the middle of the month has ended.”
Read the full article here