While further downside in NZD/USD remains in the pipeline, another visit to 0.6760 seems to be losing momentum, commented FX Strategists at UOB Group.
Key Quotes
24-hour view: “We expected NZD to ‘trade between 0.6780 and 0.6860’ yesterday. NZD subsequently rose to 0.6867 before dropping back down quickly to 0.6804. The weakened underlying tone suggests NZD is likely to drift lower towards 0.6780. The major support at 0.6760 is unlikely to come under threat. Resistance is at 0.6830 followed by 0.6855.”
Next 1-3 weeks: “Our view from Monday (29 Nov, spot at 0.6825) still stands. As highlighted, further NZD weakness is not ruled out but the prospect for NZD to weaken to the next major support at 0.6760 is not high. On the upside, a breach of 0.6880 (no change in ‘strong resistance’ level from yesterday) would indicate that the weak phase from early last week has come to an end.”