NZD/USD: Bears want to break below 0.5920 – UOB Group

The New Zealand Dollar (NZD) could rise, potentially reaching 0.6010. The major resistance at 0.6035 is unlikely to come under treat. Price action continues to suggest NZD could recover, possibly to 0.6035.

Support is at 0.5920

24-HOUR VIEW: “We expected NZD to trade in a range between 0.5915 and 0.5965 yesterday. We did not anticipate the spike in volatility as NZD plunged sharply, but briefly, to 0.5849 and then rebounded strongly to 0.5969. NZD continues to rise in early Asian trade today, and it could potentially reach 0.6010. The next resistance at 0.6035 is unlikely to come under threat. Support is at 0.5940; a breach of 0.5920 would mean that NZD is not rising further.”

1-3 WEEKS VIEW: “Last Thursday (01 Aug, spot at 0.5950), we indicated that ‘the recent two-week NZD weakness has ended.’ We also indicated that ‘the current recovery phase could extend to 0.5990.’ We added, ‘we will continue to hold the same view as long as 0.5890 (‘strong support’ level) is not breached.’ While NZD broke below 0.5890 yesterday (low of 0.5849), it rebounded strongly from the low. Notwithstanding the breach of 0.5890, the price action continues to suggest NZD could recover, possibly towards 0.6035. On the downside, the ‘strong support’ level is still at 0.5890.”