- Analytics
- News and Tools
- Market News
- NZD/USD: Further gains likely above 0.6225 – UOB
NZD/USD: Further gains likely above 0.6225 – UOB
NZD/USD needs to clear 0.6225 to allow for extra advances in the near term, note UOB Group’s Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia.
Key Quotes
24-hour view: We highlighted yesterday that NZD “is likely to break above the major resistance at 0.6225.” We also highlighted that “in view of the overbought conditions, it remains to be seen if it can maintain a foothold above this level.” However, NZD did not break 0.6225, as it dropped sharply from 0.6222 to 0.6151. Today, NZD could continue to drop, but as downward momentum has not increased much, a clear break below 0.6140 is unlikely. The risk of NZD dropping to 0.6140 will remain intact as long as it stays below 0.6200 (minor resistance is at 0.6185).
Next 1-3 weeks: After NZD soared last Friday, we indicated yesterday (04 Dec, spot at 0.6215) that “upward momentum has increased considerably, and NZD is very likely to break above 0.6225.” The sharp drop from 0.6222 to 0.6151 came as a surprise. While our ‘strong support’ at 0.6130 has not been breached, the sharp drop has diminished the odds of NZD breaking above 0.6225. In order to rejuvenate the flagging momentum, NZD must break above 0.6225 in the next 1-2 days, or a breach of 0.6130 would not be surprising. A breach of 0.6130 will indicate that NZD is likely to trade in a range for a period of time.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
