NZD/USD: Likely to decline further – UOB Group
|The New Zealand Dollar (NZD) is likely to trade in a range between 0.6035 and 0.6090. In the longer run, NZD is likely to decline further; the level to watch is 0.6005, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
Level to watch is 0.6005
24-HOUR VIEW: “NZD dropped sharply in early Asian trading yesterday. We indicated that “given the sharp increase in momentum, it is likely to decline further.” We also indicated that “the major support at 0.6005 is likely out of reach (there is another support at 0.6030).” Our view did not materialise as after dropping to 0.6041, it traded sideways for the rest of the sessions. Downward momentum has slowed, and NZD is unlikely to weaken much further. Today, it is more likely to trade in a range, probably between 0.6035 and 0.6090.”
1-3 WEEKS VIEW: “We continue to hold the same view as yesterday (16 Oct, spot at 0.6060). As highlighted, NZD is likely to decline further, and the level to watch is 0.6005. Overall, only a breach of 0.6115 (no change in ‘strong resistance’ level) would mean that the weakness in NZD that started early this month has stabilised.”
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.