NZD/USD: Set to trade in a range of 0.5710/0.5760 – UOB Group

Further range trading in New Zealand Dollar (NZD) vs US Dollar (USD) seems likely; probably in a range of 0.5710/0.5760. In the longer run, current price movements are likely part of a recovery phase that could reach 0.5775, UOB Group's FX analysts Quek Ser Leang and Peter Chia note. 

Current price movements are likely part of a recovery phase

24-HOUR VIEW: "While we expected NZD to 'rise further' yesterday, we indicated that 'overbought conditions suggest the major resistance at 0.5775 is out of reach for now.' However, NZD did not quite 'rise further,' as it traded in a higher range of 0.5721/0.5760, closing modestly higher by 0.13% at 0.5734. Further range trading seems likely today, probably in a range of 0.5710/0.5760." 

1-3 WEEKS VIEW: "Our update from yesterday (06 Mar, spot at 0.5720) remains valid. As highlighted, the 'current price movements are likely part of a recovery phase that could reach 0.5775.' Our view will be invalidated if NZD breaks below 0.5660 (‘strong support’ level was at 0.5640 yesterday)."