The New Zealand Dollar (NZD) could retest the 0.5865 level before a rebound is likely; the strong support at 0.5850 is unlikely come under threat. In the longer run, provided that NZD remains above 0.5850, it could rise gradually to 0.5960, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.
NZD can rise gradually to 0.5960
24-HOUR VIEW: “Our view for NZD to edge higher yesterday was incorrect, as it dropped to a low of 0.5864, closing at 0.5877 (-0.58%). There has been a slight increase in momentum. Today, NZD could retest the 0.5865 level before a rebound is likely. The strong support at 0.5850 is unlikely to come under threat. Resistance is at 0.5895, followed by 0.5910.”
1-3 WEEKS VIEW: “We continue to hold the same view as yesterday (20 Nov, spot at 0.5910). As highlighted, upward momentum is beginning to build. From here, provided that NZD remains above 0.5850 (no change in ‘strong support’ level), it could rise gradually to 0.5960.”