NZD/USD: Price action indicates that further NZD weakness is likely - UOB Group

New Zealand Dollar (NZD) is expected to trade in a range against US Dollar (USD), most likely between 0.5980 and 0.6020. In the longer run, price action indicates that further NZD weakness is likely; the level to watch is 0.5950, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

The level to watch is 0.5950

24-HOUR VIEW: "After NZD fell to a low of 0.5980 two days ago, we stated yesterday that 'the slight increase in downward momentum indicates NZD is likely to edge lower.' We pointed out that 'any decline is unlikely to reach the major support at 0.5950, and the low of 0.5980 from yesterday is expected to provide support as well.' NZD subsequently edged to a low of 0.5978 then recovered to close unchanged at 0.5998. The mild downward pressure has faded. Today, we expect NZD to trade in a range, most likely between 0.5980 and 0.6020."

1-3 WEEKS VIEW: "We highlighted two days ago (08 Jul, spot at 0.6015) that the price action from earlier this week 'indicates that further NZD weakness is likely, and the level to watch is 0.5950.' While NZD has yet to show significant follow-through on the downside, we will maintain our view as long as 0.6060 (no change in 'strong resistance' level) is not breached."