NZD/USD: A break above 0.6135 to change momentum to the upside – UOB Group

The New Zealand Dollar (NZD) is likely to trade in a sideways range of 0.6080/0.6120. Room for further NZD weakness. Slowdown in momentum suggests 0.6040 could be out of reach, analysts at UOB Group suggest. 

0.6040 mark is out of reach

24-HOUR VIEW: "We noted last Friday that 'the price action is likely part of a sideways trading phase.’ We held the view that NZD is likely to trade between 0.6065 and 0.6115. NZD then traded in a range of 0.6058/0.6104, closing at 0.6091 (+0.12%). We continue to expect NZD to sideways. That said, the slightly firmed underlying tone suggests a higher range of 0.6080/0.6120."

1-3 WEEKS VIEW: "We have held a negative NZD view for more than two weeks now. In our latest narrative from last Thursday (27 Jun, spot at 0.6080), we highlighted that NZD 'is likely to continue to weaken, and the next support level to watch is 0.6040.' Last Friday, NZD dipped to 0.6058 before rebounding. While there is still room for NZD to continue to weaken, the slowdown in momentum suggests 0.6040 could be out of reach this time. Conversely, if NZD breaks above 0.6135 (no change in ‘strong resistance’ level), it would mean that NZD is not weakening further."