NZD/USD: Bears push towards the 0.5915 support – UOB Group

The New Zealand Dollar (NZD) is expected to trade in a range between 0.5915 and 0.5965. Two-week NZD weakness has ended; the current recovery phase could extend to 0.5990, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann note.

NZD is set to test 0.5915 in short term

24-HOUR VIEW: “Last Friday, we expected NZD to trade in a sideways range of 0.5915/0.5955. However, NZD rose to 0.5985 and then pulled back to close at 0.5957 (+0.11%). The price action is likely part of a range trading phase. Today, we expect NZD to trade between 0.5915 and 0.5965.”

1-3 WEEKS VIEW: “Last Thursday (01 Aug, spot at 0.5950), we indicated that ‘the recent two-week NZD weakness has ended.’ We also indicated that ‘the current recovery phase could extend to 0.5990.’ NZD subsequently tested the 0.5985 level twice. While the recovery seems to be fading, we will continue to hold the same view as long as 0.5890 (no change in ‘strong support’ level) is not breached.”