NZD/USD: Downward momentum picks up pace – UOB

NZD/USD faces extra losses below the 0.6570 level in the short-term horizon, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “Yesterday, we highlighted that NZD ‘could move higher but a break of the solid resistance at 0.6660 is unlikely’. We added, ‘0.6540 is already quite a strong level’. NZD subsequently rose to a high of 0.6646 before easing off to close little changed at 0.6606 (+0.02%). There is a tentative improvement in downward momentum and for today, NZD is likely to drift lower but a clear break of the major support at 0.6570 appears unlikely (next support is at 0.6545). Resistance is at 0.6615 followed by 0.6630.”

Next 1-3 weeks: “There is not much to add to our latest narrative from last Friday (16 Oct, spot at 0.6600). As highlighted, while downward momentum has improved tentatively, NZD ‘has to close below 0.6570 before a more sustained down-move can be expected’. Looking forward, the next support below 0.6570 is at 0.6545. On the upside, a break of 0.6660 (no change in ‘strong resistance’ level) would indicate that the current mild downward pressure has eased.”