NZD/USD: The next support level to watch is 0.6040 – UOB Group

The New Zealand Dollar (NZD) is likely to trade sideways between 0.6065 and 0.6115. It may continue to weaken, and the next support level to watch is 0.6040, UOB Group analysts say.

A breach above 0.6135 to end the NZD weakness

24-HOUR VIEW: “While we expected further NZD weakness yesterday, we indicated that ‘the major support at 0.6040 is unlikely to come under threat.’ We also indicated that ‘there is another support at 0.6060.’ NZD weakened less than expected to 0.6069 before recovering to end the day unchanged at 0.6083. The price action is likely part of a sideways trading phase. Today, we expect NZD to trade between 0.6065 and 0.6115.”

1-3 WEEKS VIEW: “There is not much to add to our update from yesterday (27 Jun, spot at 0.6080). As highlighted, NZD is likely to continue to weaken. The next support level to watch is 0.6040. Overall, only a breach of 0.6135 (no change in ‘strong resistance’ level) would mean that the NZD weakness from early last week has ended.”