NZD/USD: Only above 0.5650 a move to 0.5695 is likely – UOB Group
New Zealand Dollar (NZD) is expected to trade in a sideways range of 0.5600/0.5650. In the longer run, NZD must break and remain above 0.5650 before a move to 0.5695 is likely, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.
NZD is expected to trade in a sideways range
24-HOUR VIEW: “We expected NZD to ‘trade in a 0.5570/0.5635 range’ yesterday. Our view was incorrect, as NZD soared to 0.5651. However, the advance was brief, as NZD fell quickly from the high to close at 0.5616 (+0.21%). As there has been no significant increase in upward momentum, NZD is unlikely to advance much further. Today, we expect it to trade in a sideways range of 0.5600/0.5650.”
1-3 WEEKS VIEW: “Our latest narrative was from Tuesday (14 Jan, spot at 0.5590), wherein ‘the recent whippy price action has resulted in a mixed outlook.’ We indicated that ‘for the time being, NZD could trade in a sideways range of 0.5540/0.5650.’ Yesterday, NZD rose and tested the upper bound of our expected range, reaching a high of 0.5651. It then pulled back to close at 0.5616, up by 0.21% for the day. Although there has been a slight increase in momentum, NZD must break and remain above 0.5650 before a move to 0.5695 is likely. The likelihood of NZD breaking clearly will increase in the next few days, provided that it remains above 0.5580 (‘strong support’ level).”
Author
FXStreet Insights Team
FXStreet
The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.
