NZD/USD risks extra losses on a close below 0.6460 – UOB
|The kiwi dollar could depreciate to the 0.6420 region vs. the greenback if NZD/USD closes below 0.6460, in opinion of FX Strategists at UOB Group.
Key Quotes
24-hour view: “Our expectation for the ‘weakness in NZD to extend further’ did not materialize as NZD edged one pip below Friday’s low of 0.6454 before trading sideways. Downward momentum has eased considerably and the current movement is viewed as part of a consolidation phase. In other words, NZD is expected to trade sideways, likely between 0.6450 and 0.6485.”
Next 1-3 weeks: “The pace of the decline in NZD appears to have slowed as NZD traded in a quiet manner between 0.6453 and 0.6479 yesterday (03 Feb). For now, we are holding to our view from last Friday (31 Jan, spot at 0.6485) wherein ‘NZD has to close below the solid 0.6460 support before further weakness to 0.6420 can be expected’. On the upside, NZD has to move above 0.6520 (no change in ‘strong resistance’ level) in order to indicate that the current weakness has stabilized.”
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.