NZD/USD: A break above 0.6130 is possible

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NZD/USD: A break above 0.6130 is possible
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The New Zealand Dollar (NZD) is expected to trade in a 0.6065/0.6130 range, UOB Group FX analysts Quek Ser Leang and Peter Chia note.

The New Zealand Dollar is expected to trade in a 0.6065/0.6130 range, UOB Group FX analysts Quek Ser Leang and Peter Chia note. NZD to break above 0.6130 in due time 24-HOUR VIEW: “Two days ago, NZD plunged to a low of 0.6060. Yesterday, we indicated that ‘the sharp drop appears to be overdone, and NZD is unlikely to weaken further.’ We expected NZD to trade in a range between 0.6070 and 0.6115.’ Instead of trading in a range, NZD popped to a high of 0.6134 before pulling back, closing at 0.

The brief advance did not result in any increase in momentum. Today, we expect NZD to trade in a 0.6065/0.6130 range.” 1-3 WEEKS VIEW: “Yesterday , we indicated that ‘downward momentum has increased somewhat. We were of the view that NZD could ‘edge lower, but the prospect of it breaking below 0.6045 is not high for now.’ In NY trade, NZD rose briefly above our ‘strong resistance’ level of 0.6130 . The breach of 0.6130 indicates that the tentative buildup in downward momentum has faded.

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