The New Zealand Dollar (NZD) is likely to decline. The next support level is at 0.6005. The latter level is likely out of reach for now, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann note.

Above 0.6085 the NZD is set to turn to the upside

24-HOUR VIEW: “We expected NZD to trade between 0.6045 and 0.6100 yesterday. NZD then traded in a range of 0.6044/0.6086, closing on a soft note at 0.6045 (-0.61%). Given the buildup in momentum, NZD is likely to decline today. Support levels are at 0.6030 and 0.6005. The latter level is likely out of reach for now. To maintain the buildup in momentum, NZD must not break above 0.6065 with minor resistance at 0.6055.”

1-3 WEEKS VIEW: “On Wednesday (17 Jul, spot at 0.6070), we highlighted that ‘downward momentum is building, but not sufficiently enough to suggest the start of a sustained decline.’ We also highlighted that NZD 'has to break and stay below 0.6030 before further weakness can be expected.' Yesterday, NZD fell to a low of 0.6044. Downward momentum has increased further, and the chance of NZD breaking below 0.6030 has also increased. The next level to watch below 0.6030 is 0.6005. On the upside, should NZD break above 0.6085 (‘strong resistance’ level previously at 0.6115), it would mean that the buildup in momentum has faded.”