NZD/USD: Solid resistance aligns at 0.6190 – UOB

Extra recovery could now see NZD/USD revisit the tough barrier at 0.6190 in the next few weeks, according to FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.

Key Quotes

24-hour view: “We expected NZD to ‘trade between 0.6080 and 0.6150’ yesterday. NZD subsequently traded between 0.6086 and 0.6157. Upward momentum is beginning to build and NZD is likely to edge higher to 0.6170. The major resistance at 0.6195 is unlikely to come under threat. Support is at 0.6130 followed by 0.6110.”

Next 1-3 weeks: “Our update from yesterday (12 Sep, spot at 0.6110) still stands. As highlighted, the recent NZD weakness has come to an end. Upward momentum is improving and NZD could edge higher but any advance is expected to face solid resistance at 0.6190. Support wise, a break of 0.6090 (‘strong support’ was at 0.6050 yesterday) would indicate that the current upward pressure has eased.”