NZD/USD: Likely to trade in a 0.5500/0.5600 range – UOB Group
New Zealand Dollar (NZD) is likely to trade in a 0.5500/0.5600 range vs US Dollar (USD). In the longer run, it is too early to expect the weakness to stabilise, but it remains to be seen if NZD can decline to the next support at 0.5450, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
NZD can decline to the next support at 0.5450
24-HOUR VIEW: "While NZD continues to decline after the outsized drop last Friday, downward momentum seems to have slowed slightly. This, combined with oversold conditions, suggests NZD is more likely to trade in a 0.5500/0.5600 range today instead of declining further."
1-3 WEEKS VIEW: "After NZD surged to a high of 0.5852, in our latest update from last Friday (04 Apr, spot at 0.5785), we pointed out that 'for further sustained rise, NZD must close above 0.5850.' However, NZD did not rise further. Instead, it plunged over the past couple of days. Although it is too early to expect the weakness to stabilise, it remains to be seen how much more can NZD decline. The next support is at 0.5450. On the upside, a breach of the ‘strong resistance’ at 0.5690 would mean that NZD is unlikely to weaken further."
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FXStreet Insights Team
FXStreet
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