The corrective pullback in the New Zealand Dollar (NZD) could reach the major support at 0.6115, UOB Group FX strategists Quek Ser Leang and Alvin Liew note.

Bears push to test 0.6115

24-HOUR VIEW: “NZD swung between 0.6157 and 0.6253 last Friday before closing at 0.6175 (-0.76%). The weak closing has led to an increase in downward momentum, albeit not much. Today, provided that NZD remains below 0.6220 (minor resistance is at 0.6200), it could break below 0.6150. The major support at 0.6115 is highly unlikely to come into view today.”

1-3 WEEKS VIEW: “The current price action is likely part of a corrective pullback that could potentially reach the major support at 0.6115. A break of this level is not ruled out, but as downward momentum is only beginning to build, the chance of a sustained drop below this level is low for now. On the upside, should NZD break above 0.6250, it would mean that the buildup in momentum has faded.”