NZD/USD: Likely to consolidate within a range of 0.5775/0.5810 – UOB Group
New Zealand Dollar (NZD) is likely to consolidate within a range of 0.5775/0.5810. In the longer run, unless there is a meaningful decline soon, a break above 0.5815 would suggest NZD has moved into a range-trading phase, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Above 0.5815, NZD is set to move into a range-trading phase
24-HOUR VIEW: "Our view for NZD to 'consolidate between 0.5765 and 0.5790' yesterday was incorrect. Instead of consolidating, NZD rose to a high of 0.5808 before settling at 0.5795 (+0.27%). The modest rise did not result in a significant increase in upward momentum. Today, we continue to expect consolidation, most likely within a range of 0.5775/0.5810."
1-3 WEEKS VIEW: "We have held a negative stance on NZD since 19 Sep, when it was at 0.5890. In our most recent narrative from last Friday (26 Sep, spot at 0.5765), we highlighted that 'the outlook for NZD remains negative, and the next level to watch is 0.5730.' Yesterday, we indicated that 'while downward momentum is starting to slow, only a breach of 0.5815 (‘strong resistance’ level) would negate the current negative outlook.' NZD subsequently rose to 0.5808. Downward momentum has slowed further, and unless there is a meaningful decline soon, a break above 0.5815 would suggest that NZD has moved into a range-trading phase"
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FXStreet Insights Team
FXStreet
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