Set to fall below 0.6115 – UOB Group

New Zealand dollar (NZD) corrective pullback could hit major support at 0.6115, note UOB Group FX strategists Quek Ser Leang and Alvin Liew.

Bears are pushing to test 0.6115

24 HOURS: “NZD ranged between 0.6157 and 0.6253 last Friday before closing at 0.6175 (-0.76%). The weak close led to an increase in downside momentum, though not by much. Today, provided NZD stays below 0.6220 (minor resistance is at 0.6200), it could break below 0.6150. Major support at 0.6115 is highly unlikely to occur today.”

WEEKS 1-3: “Current price action is likely part of a corrective pullback that could hit major support at 0.6115. A break of this level is not out of the question, but as the downward momentum is just beginning to develop, the chance of a sustained decline below this level is low for now. On the other hand, if the NZD breaks above 0.6250, it would mean that the momentum build-up has faded.”