NZD/USD: A slim chance of NZD reaching 0.5565 – UOB Group
New Zealand Dollar (NZD) is expected to trade in a higher range of 0.5625/0.5670 vs US Dollar (USD). In the longer run, slowing momentum indicates a slim chance of NZD reaching 0.5565; a breach of 0.5670 would suggest range trading, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
Expected to trade in a higher range
24-HOUR VIEW: "The following are the excerpts from our update yesterday: “The price movements did not result in any increase in either downward or upward momentum. Today, we continue to expect range trading, most likely between 0.5590 and 0.5640.' Our view of range trading was incorrect, with NZD rising to 0.5666 after dipping to a low of 0.5597. Despite the advance, momentum has not increased significantly. Today, we expect NZD to trade in a range, though a higher one of 0.5625/0.5670."
1-3 WEEKS VIEW: "On Monday, when NZD was at 0.5605, we highlighted the following: 'While we continue to see room for NZD to weaken, it remains to be seen if the next support level at 0.5565 is within reach.' We also highlighted that 'a breach of 0.5670 (‘strong resistance’ level) would
indicate that the NZD weakness from late last week has ended.' Yesterday, NZD rose to 0.5666. While slowing momentum indicates that the chance of NZD reaching 0.5565 is slim, only a breach of 0.5670 would suggest that NZD has moved into a range trading phase."
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FXStreet Insights Team
FXStreet
The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.
