There is a chance for New Zealand Dollar (NZD) to test 0.5800; a clear break above this level appears unlikely. In the longer run, NZD could rise above 0.5800, but it is too early to determine if it can maintain a foothold above this level, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Clear break above 0.5800 appears unlikely

24-HOUR VIEW: "The following are excerpts from our update from yesterday: 'The slight increase in upward momentum may lead to NZD testing 0.5785. The resistance at 0.5800 is unlikely to come into view. Support levels are at 0.5760 and 0.5750.' We were not wrong, as NZD dipped to 0.5760 and then rose to a high of 0.5789. Although upward momentum has not increased significantly, there is a chance for NZD to test 0.5800 today. That said, a clear break above this level appears unlikely. Today’s support levels are at 0.5770 and 0.5760."

1-3 WEEKS VIEW: "Two days ago (27 Oct, spot at 0.5765), we noted that 'there has been a slight increase in upward momentum.' However, we noted that 'for a continued rise, NZD must first close above 0.5800.' Yesterday, NZD rose to a high of 0.5789. Upward momentum has increased further, albeit not much. From here, there is scope for NZD to rise above 0.5800, but it is too early to determine if it can maintain a foothold above this level. Overall, only a breach of 0.5740 (‘strong support’ level was at 0.5730 yesterday) would mean that the current upward bias has faded."