NZD/USD: Major resistance at 0.6090 is probably out of reach – UOB Group

Further New Zealand Dollar (NZD) advance is likely against US Dollar (USD), but the major resistance at 0.6090 is probably out of reach. In the longer run, NZD is likely to test the 0.6090 level; it is too early to determine if it can break clearly above this level, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

NZD is likely to advance against the USD

24-HOUR VIEW: "NZD rose to 0.6040 two days ago and then pulled back. Yesterday, we indicated that 'given that upward momentum is slowing, we expect NZD to trade in a range, most likely between 0.5975 and 0.6040.' NZD subsequently traded in a range of 0.6006/0.6043, closing at 0.6038 (+0.51%). However, NZD rose sharply in the early Asian trade today. Further advance appears likely, but based on the current momentum, the major resistance at 0.6090 is probably out of reach. Note that there is another resistance level at 0.6075. Support is at 0.6035; a breach of 0.6015 would indicate that NZD is not rising further."

1-3 WEEKS VIEW: "We stated two days ago (24 Jun, spot at 0.5995) that the recent 'sharp but short-lived swings have resulted in a mixed outlook.' We were of the view that NZD 'is likely to trade in a range of 0.5900/0.6090 for now.' NZD closed at 0.6038 yesterday and rose further today. The price action suggests that NZD is likely to test the 0.6090 level. At this time, it is too early to determine if NZD can break clearly above this level. That said, the chance of NZD breaking 0.6090 will remain intact as long as it holds above 0.5960 (‘strong support’ level)."