Can potentially reach June’s high of 0.6223 – UOB Group

The New Zealand Dollar (NZD) is expected to trade in a sideways range of 0.6120/0.6160. On the weekly chart, overbought advance doesn’t appear to be losing steam yet; NZD could potentially reach June’s high of 0.6223, UOB Group FX strategists Quek Ser Leang and Peter Chia note.

The 0.6223 level is the potential target

24-HOUR VIEW: “We noted yesterday that ‘the price action is likely part of a sideways trading phase,’ and we expected NZD to trade between 0.6135 and 0.6180. NZD then traded in a range of 0.6129/0.6169, closing at 0.6141 (-0.24%). The price action still seems to be part of a sideways trading phase. Today, NZD is expected to trade in a range of 0.6120/0.6160.

1-3 WEEKS VIEW: “Our update from yesterday (22 Aug, spot at 0.6160) remains valid. As highlighted, the current overbought advance doesn’t seem to be losing steam yet. NZD could potentially rise further and reach June’s high of 0.6223. However, to keep the momentum going, NZD must not break below 0.6090 (no change in ‘strong support’ level from yesterday).”