In opinion of FX Strategists at UOB Group, odds for a moderate rebound in NZD/USD appear to have run out of steam as of late.
24-hour view: “Expectation for NZD to “edge lower” was incorrect as it rose to a high of 0.6334. While the advance lacks momentum, there is room for NZD to test the strong 0.6350 resistance level. For today, the prospect for a clear break of this level is not high. Support is at 0.6300 followed by 0.6280”.
Next 1-3 weeks: “NZD spent another day ‘going nowhere’ as it traded within a narrow range and ended the day little changed at 0.6291 (-0.06%). Our expectation (from last Friday, 04 Oct, spot at 0.6300) for a “strong and sustained recovery” has not materialize and the prospect for such a scenario has diminished. Unless NZD can move and stay above 0.6325 within these 1 to 2 days, the current price action appears to be more akin to a ‘consolidation phase’ instead of a ‘strong recovery”. From here, a dip below 0.6270 is enough to indicate that NZD could trade sideways within a 0.6255/0.6350 range for a period”.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.