FX Strategists at UOB Group noted the chances of the Kiwi Dollar to break below 0.6540 are not high for the time being.
Key Quotes
24-hour view: “The major 0.6540 support remains unchallenged as NZD staged a surprisingly robust recovery and hit a high of 0.6608. The rebound appears to be running ahead of itself and while a retest of the high near 0.6610 is not ruled out, a break above the major 0.6630 resistance seems unlikely. Support is at 0.6560 followed by the still very solid level of 0.6540″.
Next 1-3 weeks: “NZD edged lower and touched a fresh low of 0.6545 yesterday (15 Aug), just above the strong 0.6540 support that we have highlighted in recent updates. As indicated yesterday, while we did not detect any significant improvement in downward momentum, there is still scope for NZD to reach 0.6540. That said, the combination of oversold conditions and lackluster momentum suggest that the odds for further extension to the next ‘target’ at 0.6490 are not high. On the upside, a break of 0.6630 (‘stop-loss’ unchanged) would indicate that NZD has made a short-term bottom”.
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