NZD/USD: Likely to trade in a range between 0.5760 and 0.5800 – UOB Group
New Zealand Dollar (NZD) is likely to trade in a range between 0.5760 and 0.5800. In the longer run, NZD is likely to trade in a range between 0.5740 and 0.5825, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
NZD is likely to trade in a range
24-HOUR VIEW: "We expected NZD to 'trade in a range between 0.5760 and 0.5800' yesterday. NZD then traded in a higher range of 0.5769/0.5810, closing largely unchanged at 0.5784 (-0.09%). Momentum indicators remain mostly flat, and we continue to expect NZD to trade in a range between 0.5760 and 0.5800 today."
1-3 WEEKS VIEW: "In our update on Monday (05 Jan, spot at 0.5755), we indicated that 'the pullback in NZD from last month’s high of 0.5853 has scope to extend'. However, we were of the view that 'any decline is expected to face strong support at 0.5720'. Yesterday, NZD rose above our ‘strong resistance’ level of 0.5800. The breach of 0.5800 has invalidated our view. In other words, instead of pulling back further, NZD is likely to trade in a range, probably between 0.5740 and 0.5825."
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FXStreet Insights Team
FXStreet
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