NZD/USD: Clear break above 0.5920 seems unlikely – UOB Group

There is scope for New Zealand Dollar (NZD) to continue to edge higher; a clear break above 0.5920 seems unlikely. In the longer run, the likelihood of NZD breaking above the top of the 0.5820/0.5920 range is increasing, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

NZD may break above the top of the 0.5820/0.5920 range

24-HOUR VIEW: "We expected NZD to rise last Friday. Yesterday, when NZD was at 0.5895, we indicated that 'there is scope for NZD to continue to edge higher, but a break above 0.5920 seems unlikely.' Support levels are at 0.5885 and 0.5875."

1-3 WEEKS VIEW: "After expecting NZD to trade in a 0.5820/0.5920 range since early last week, we pointed out on Friday (29 Aug, spot at 0.5880) that 'shorter-term upward momentum has increased somewhat.' We also pointed out that 'the likelihood of NZD breaking above 0.5920 has also increased, and it will increase further in the coming days provided that NZD holds above 0.5835.' We continue to hold the same view, but we are revising the ‘strong support’ level to 0.5855 from 0.5835."