The New Zealand Dollar (NZD) still seems weak; it remains to be seen if it has enough momentum to reach the next major support at 0.6075, UOB Group Quek Ser Leang and Peter Chia note.

NZD can reach the next major support at 0.6075

24-HOUR VIEW: “NZD fell sharply on Monday. Yesterday (Tuesday), we highlighted that ‘the decline has not stabilised, but severely oversold suggests any decline is probably part of a lower trading range of 0.6105/0.6165.’ NZD then traded between 0.6113 and 0.6169, closing at 0.6126 (- 0.55%). Tentative signs of slowing momentum combined with the still oversold conditions suggest NZD is likely to trade in a range today, expected to be between 0.6110 and 0.6165.”

1-3 WEEKS VIEW: “Our update from yesterday (07 Oct, spot at 0.6125) is still valid. As highlighted, while NZD still seems weak, it remains to be seen if NZD has enough momentum to reach the next major support at 0.6075. Overall, only a breach of 0.6195 (no change in ‘strong resistance’ from yesterday) would mean that the NZD weakness from the middle of last week has stabilised.”