Bulls push towards 0.6055 – UOB Group

The New Zealand dollar (NZD) is advancing towards the 0.6055 resistance, note UOB Group FX strategists Quek Ser Leang and Peter Chia.

A test of 0.6055 is possible in the short term

24 HOUR VIEW: “NZD traded between 0.5991 and 0.6033 yesterday, higher than our expected sideways trading range of 0.5980/0.6020. NZD closed little changed at 0.6018 (+0.05%). The upward momentum has increased, though not by much. Today, NZD could rise above 0.6035, but may not be able to hold above this level. Major resistance at 0.6055 is unlikely to occur. Support is at 0.6010, followed by 0.5995.”

WEEKS 1-3: “We highlighted yesterday (August 12, point at 0.6000) that “while the NZD could continue to rise, it needs to break clearly above 0.6035 before an advance to 0 can be expected, 6055″. I also pointed out that “The chance of NZD breaking clear above 0.6035 is not high for now, but it will remain intact as long as 0.5960 (the previous ‘strong support’ level at 0.5890) is not breached “. There is no change in our vision.”