Slight increase in upward momentum may lead to New Zealand Dollar (NZD) testing 0.5785; the resistance at 0.5800 is unlikely to come into view. In the longer run, there has been a slight increase in upward momentum; for a continued rise, NZD must first close above 0.5800, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
Resistance at 0.5800 is unlikely to come into view
24-HOUR VIEW: «We expected NZD to ‘trade within a relatively broad range between 0.5740 and 0.5800’ yesterday. However, NZD traded in a range of 0.5752/0.5778. The slight increase in upward momentum may lead to NZD testing 0.5785. The resistance at 0.5800 is unlikely to come into view. Support levels are at 0.5760 and 0.5750.»
1-3 WEEKS VIEW: «The following are excerpts from our update yesterday (27 Oct, spot at 0.5765): ‘There has been a slight increase in momentum, but for a continued rise, NZD must first close above 0.5800. The likelihood of NZD closing above 0.5800 is not high, but it will remain intact as long as the ‘strong support’ level, now at 0.5715, is not breached.’ There is no change in our view, but the ‘strong support’ level is now at 0.5730 instead of 0.5715.»