Extra consolidation likely in NZD/USD – UOB

Pablo Piovano FXStreet

NZD/USD is still expected to navigate within 0.6740 and 0.6870 in the near term, according to FX Strategists at UOB Group.

Key Quotes

24-hour view: “We highlighted yesterday that ‘the decline in NZD has room to extend but oversold conditions suggest that the chance of a break of 0.6775 is not high’. Our expectations did not quite materialize as NZD traded sideways between 0.6788 and 0.6818. The underlying tone still appears to be a tad soft and we continue to see chance for NZD to drift lower. That said, a break of 0.6775 is unlikely. Resistance is at 0.6810 followed by 0.6820.”

Next 1-3 weeks: “There is no change in our view from yesterday (17 Jan, spot at 0.6810). As highlighted, the recent sharp and rapid loss in momentum has resulted in a mixed outlook and NZD is likely to trade between 0.6740 and 0.6870 for now.”

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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