Can break below 0.6115 – UOB Group

The New Zealand Dollar (NZD) could break below 0.6115; the support at 0.6085 is highly unlikely to come into view, UOB Group FX strategists Quek Ser Leang and Peter Chia note.

Bears target 0.6115 in the sort term

24-HOUR VIEW: “We indicated yesterday that ‘provided that NZD remains below 0.6220, it could break below 0.6150.’ We added, ‘the major support at 0.6115 is highly unlikely to come into view today.’ Our view turned out to be correct, as NZD fell to a low of 0.6132. The price action suggests NZD could break below 0.6115 today. This time around, the support at 0.6085 is highly unlikely to come into view. Resistance levels are at 0.6160 and 0.6175.”

1-3 WEEKS VIEW: “The following is from our update yesterday (09 Sep, spot at 0.6170): The current price action is likely part of a corrective pullback that could potentially reach the major support at 0.6115. A break of this level is not ruled out, but as downward momentum is only beginning to build, the chance of a sustained drop below this level is low for now. On the upside, should NZD break above 0.6250, it would mean that the buildup in momentum has faded. NZD then fell, reaching a low of 0.6132. We continue to expect NZD to pullback. The increase in momentum suggests a break of 0.6115 could lead a deeper pullback towards 0.6085. To maintain the momentum, NZD must not break above 0.6205 (‘strong resistance’ level was at 0.6250 yesterday).”