NZD/USD faces extra range bound near term – UOB
In the opinion of UOB Group’s Economist Lee Sue Ann and Market Strategist Quek Ser Leang, NZD/USD is still seen navigating within the 0.6160-0.6280 range in the near term.
Key Quotes
24-hour view: “Yesterday, we held the view that NZD ‘could break above 0.6280 but it is unlikely to maintain a foothold above this level’. However, NZD did not break 0.6280 as it dropped from 0.6271 to a low of 0.6215. Downward momentum has improved a tad and today, NZD is likely to edge lower but a break of 0.6190 is unlikely. On the upside, a breach of 0.6250 (minor resistance is at 0.6235) would indicate that the current mild downward pressure has eased.”
Next 1-3 weeks: “We highlighted yesterday (29 Mar, spot at 0.6250) that ‘if NZD breaks and stays above 0.6280, it would increase the risk of a break of 0.6310’. NZD rose to 0.6271 before dropping quickly from the high. The build-up of momentum fizzled out quickly. In other words, instead of breaking upwards, NZD is more likely to trade in a range for the time being, expected to be between 0.6160 and 0.6280.”
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.
