UOB Group economist Lee Su An and market strategist Kwik Ser Liang suggest that NZD/USD needs to clear the 0.62754 level for a possible move to 0.6315 in the near term.
Key words
24-Hour View: “We did not expect a strong rise in NZD to 0.6263 yesterday (we were expecting NZD to trade in a range). Not surprisingly, sharp and fast growth is overbought. However, with no signs of weakness, NZD may test resistance at 0.6275. Today, a sustained rise above 0.6275 is unlikely. On the downside, a breach of 0.6160 (short support at 0.6190) would indicate that the current upside pressure has eased.”
Next 1-3 weeks: “Yesterday (March 13, spot at 0.6145), we noted that NZD ‘appears to have moved into a consolidation phase and could trade between 0.6085 and 0.6220’. We did not expect a strong rise to 0.6263. Upward momentum has improved, though not by much. NZD needs to break clear above 0.6275 (next resistance level at 0.6315) before a sustained advance. A clear break above NZD 0.6275 remains intact as long as NZD remains above 0.6145.”
