NZD/USD might edge lower and test 0.5720 – UOB Group
New Zealand Dollar (NZD) could edge lower and test 0.5720. In the longer run, NZD is under mild downward pressure, and could edge lower, potentially testing 0.5700, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
NZD is under mild downward pressure
24-HOUR VIEW: "We highlighted yesterday that NZD 'appears to have entered a sideways-trading phase, most likely between 0.5750 and 0.5790'. The subsequent price movements did not turn out as expected. NZD rose to 0.5788 and then fell sharply to a low of 0.5727. Downward momentum has increased, but not much. Today, NZD could edge lower and test 0.5720. A break of this level is not ruled out, but based on the current momentum, any further decline is unlikely to reach 0.5700. Resistance levels are at 0.5760 and 0.5775."
1-3 WEEKS VIEW: "Two days ago (29 Oct, spot at 0.5780), we highlighted that 'there is scope for NZD to rise above 0.5800, but it is too early to determine if it can maintain a foothold above this level'. After NZD subsequently rose to a high of 0.5801 and then pulled back sharply, we highlighted yesterday (30 Oct, spot at 0.5770) that 'upward momentum has faded with the pullback', and we expected NZD to 'trade in a range between 0.5730 and 0.5805'. NZD subsequently dropped slightly below 0.5730 (low of 0.5727). There has been a slight increase in downward momentum, and from here, we expect NZD to edge lower, potentially testing 0.5700. Note that there is another support level at 0.5720. On the upside, a break of 0.5790 would indicate that the mild downward pressure has eased."
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FXStreet Insights Team
FXStreet
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