NZD/USD: Short-Term Test of 0.5800 Expected – UOB Group
The New Zealand Dollar (NZD) could test the 0.5800 level in the short term, though a sustained break above this resistance appears unlikely, according to UOB Group FX strategists Quek Ser Leang and Peter Chia. Over the longer term, NZD may move above 0.5800, but it is too early to tell if it can hold gains beyond this level.
24-Hour Outlook
UOB noted that yesterday the NZD dipped to 0.5760 before climbing to a high of 0.5789, in line with their earlier expectation of limited upward momentum. They see the potential for the pair to test 0.5800 today, but a clear break above remains unlikely. Immediate support levels are at 0.5770 and 0.5760.
1-3 Weeks View
The analysts highlighted that upward momentum has increased slightly over the past few days. While there is scope for NZD to push above 0.5800, only a breach of 0.5740 would signal that the current bullish bias has faded. For sustained gains, the pair must close convincingly above 0.5800.