In light of the recent price action, NZD/USD is now posed for some consolidation, suggested FX Strategists at UOB Group.
24-hour view: “Expectation for NZD to trade sideways was incorrect as it dropped to 0.6241 before rebounding strongly. Downward pressure has dissipated and the 0.6241 low is not expected to come into the picture for today. That said, a sustained rise in NZD is not expected as it is more likely to consolidate and trade sideways, likely between 0.6260 and 0.6305”.
Next 1-3 weeks: “Our expectation for NZD to “edge higher to 0.6375” from Monday (14 Oct, spot at 0.6330) was incorrect as NZD dropped below the strong 0.6270 support yesterday (low of 0.6259). The current price action is viewed as part of an on-going sideway-trading phase and NZD could trade in an ‘undecided’ manner and within a 0.6235/0.6355 range for a period”.
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