24-hour view: “We did not anticipate the sharp sell-off that sent NZD plunging to 0.6856. The sharp and rapid decline appears to be overdone and NZD is unlikely to weaken much further. For today, NZD is more likely to trade between 0.6850 and 0.6925.”
Next 1-3 weeks: “While we highlighted yesterday (24 Nov, spot at 0.6940) that ‘the odds for NZD to drop below the next support at 0.6900 has increased’, we did expect the manner by which NZD sliced through 0.6900 and plunged to 0.6856. Further weakness is not ruled but oversold conditions suggest that the next major support at 0.6810 could be out of reach this time round (0.6850 is already quite a strong support level). Overall, the downside risk is deemed intact as long as NZD does not move above 0.6960 (‘strong resistance’ level was at 0.7005 yesterday).”
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.