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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, according to analysts at UOB Group.
A breach of 0.6135 ends the weakness of the New Zealand dollar
“24-hour outlook: “While we expected further NZD weakness yesterday, we noted that “key support at 0.6040 is unlikely to be threatened”. We also noted that “another support is at 0.6060”. The NZD weakened less than expected to 0.6069 before recovering to end the day unchanged at 0.6083. The price action is likely to be part of a sideways trading phase. Today, we expect the NZD to trade between 0.6065 and 0.6115.”
A look at the past three weeks: “There is not much to add to our update from yesterday (June 27, spot at 0.6080). As noted, NZD weakness is likely to continue. The next support level to watch is 0.6040. Overall, a break of 0.6135 (no change in ‘strong resistance’ level) would only mean that NZD weakness from early last week is over.”
