NZD/USD: Rascher Aufbau des Momentums deutet weiterhin auf NZD-Stärke hin - UOB Group

Further strength in the New Zealand Dollar (NZD) against the US Dollar (USD) is not out of the question, with any further advance likely to be part of a higher 0.5785/0.5845 range. In the longer term, the rapid build-up in momentum continues to point to NZD strength; the level to watch is 0.5870, note UOB Group FX analysts Quek Ser Leang and Peter Chia.

The level to watch is 0.5870

24-HOUR VIEW: "NZD rose to a high of 0.5755 last Friday. Yesterday, Monday, we noted that 'the increase in momentum suggests that there is potential for NZD to rise further'. We also noted that 'it is unclear for now whether NZD can break and hold above the 0.5765/0.5775 resistance zone. We did not quite expect the rapid acceleration as the NZD broke above the resistance zone and reached 0.5826. While further NZD strength cannot be ruled out, any advance is likely to be part of a higher 0.5785/0.5845 range. In other words, NZD is unlikely to break significantly above 0.5845 today.

1-3 WEEK VIEW: "Yesterday (Mar 17), when NZD was at 0.5750, we indicated that 'upward momentum is building again, but NZD needs to break and hold above the 0.5765/0.5775 resistance zone before a sustained advance is likely'. We did not anticipate the sudden spike that took NZD to a high of 0.5826. The rapid build-up of momentum continues to point to NZD strength. The level to watch on the upside is 0.5870. On the downside, the 'strong support' level has moved higher from 0.5695 to 0.5740.