The rebound in the New Zealand dollar (NZD) has a margin to test 0.6025 against the US dollar (USD), but it is unlikely that a sustained breakup will occur above this level. In the long term, the NZD must break and stay below 0.5940 before they are probable more falls, the FX analysts of UOB Group, quek being Leang and Peter Chia.
Sustained rupture above 0.6025 is unlikely
24-hour vision: “Our vision for the NZD ‘to trade in a lateral range of 0.6000/0.6045’ Yesterday it was incorrect. Instead of trade laterally, the USD fell to a minimum of 0.5959 and then bounced to close at 0.5992 (-0.64%). The rebound seems to have margin to try 0.6025 Probable that there is a sustained breakdown above this level.
Vision 1-3 weeks: “On Tuesday (June 17, for 0.6055), we noticed ‘an increase in the bullish momentum’, but we point out that ‘it is not enough to indicate the beginning of a sustained advance.’ We indicate that the NZD ‘must close first above 0.6095 before a movement towards 0.6135 can be expected.’ After the NZD fell below our level of ‘strong support’ of 0.6005, we indicated yesterday (June 19, for 0.6025) that the NZD ‘was expected to trade in a range between 0.5980 and 0.6080.’ We did not expect the NZD to fall below 0.5980, reaching a minimum of 0.5959. This risk remains intact as long as 0.6055 is not broken. “
Source: Fx Street
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