NZD/USD is consolidating between 0.5590 and 0.5625 – UOB Group
|The price movements are likely part of a consolidation phase between 0.5590 and 0.5625. In the longer run, NZD is expected to move lower; if it breaks below 0.5565, it could decline further to 0.5540, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
NZD is expected to move lower
24-HOUR VIEW: "NZD dropped to a low of 0.5582 last Thursday. On Friday, we were of the view that 'there is a chance for NZD to test 0.5565'. We pointed out that 'a continued decline below this level is unlikely'. Our expectations did not materialise, as NZD traded within a range of 0.5581/0.5615. The price movements are likely part of a consolidation phase. Today, we expect NZD to trade between 0.5590 and 0.5625."
1-3 WEEKS VIEW: "Last Thursday (20 Nov, spot at 0.5610), we highlighted that 'given the sharp increase in downward momentum, we expect NZD to weaken to 0.5585, and potentially 0.5565'. After NZD dropped to 0.5582, we indicated on Friday that we 'continue to expect a lower NZD and if it breaks below 0.5565, it could decline further to 0.5540'. There is no change in our view. On the upside, if NZD breaks above 0.5640 (no change in ‘strong resistance’ level), it would mean that the current downward pressure has eased."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.