Search ForexCrunch

The down move in NZD/USD could extend towards the 0.6500 region in the near term, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “Our expectations of sideways trading above 0.6600 was proven wrong overnight as NZD was sold off hard to a low of 0.6543. Now, momentum is building on the downside and may trade a lower range between 0.6520 and 0.6580″.

Next 1-3 weeks: “As highlighted on Monday (29 Jul, spot at 0.6635), the mid-July low near 0.6565 is unlikely to come into the picture unless there is a NY close below 0.6610. Yesterday’s price action was decisive. After taking out 0.6600, the key support at 0.6565 was taken out in quick session (within an hour). The ensuring strong momentum means that NZD is probably going to test its next big level at 0.6500 ‘soon’. the prospect for a move to 0.6565 has increased. On the top side, only a recovery above 0.6600 would negate the ‘downside bias’.