According to UOB Group FX analysts Quek Ser Leang and Peter Chia, as long as the New Zealand Dollar (NZD) remains below 0.6185, there is a possibility for it to test 0.6115. However, a sustained break below this level is unlikely. In the longer term, a break of 0.6115 could lead to a deeper pullback towards 0.6085.
Analyzing the NZD Movement
24-HOUR VIEW: Despite a relatively quiet price action, the underlying tone for NZD appears soft. If NZD remains below 0.6185, there is a chance for it to test 0.6115 before a potential recovery. However, a sustained break below 0.6115 seems unlikely at this point.
1-3 WEEKS VIEW: The corrective pullback in NZD could reach 0.6115, as indicated on Monday. A break of 0.6115 may lead to a deeper pullback towards 0.6085. To maintain momentum, NZD must not surpass 0.6205, which is considered a strong resistance level.
Analysis and Implications
For investors and traders, keeping an eye on the NZD movement below 0.6185 is crucial. A potential test of 0.6115 could present trading opportunities, but a sustained break below this level may indicate a deeper pullback towards 0.6085. It is important to consider the resistance level at 0.6205 to gauge the momentum of NZD in the coming weeks.