According to FX Strategists at UOB Group, NZD/USD is now seen sidelined after charting a short-term top in the 0.6460 region in past sessions.
Key Quotes
24-hour view: “NZD touched the top of our expected sideway-trading range of 0.6380/0.6430 (high of 0.6430) before staging a sharp and rapid decline to a low of 0.6370 during late-NY hours. Downward momentum has ticked up, albeit not by much. From here, NZD could extend its decline and even though the strong 0.6350 support could be out of reach. On the upside, 0.6410 is likely strong enough to cap any intraday recovery”.
Next 1-3 weeks: “We highlighted yesterday (05 Nov, spot at 0.6400) that a “short-term top is in place” and added, “NZD is likely to trade sideways between 0.6350 and 0.6450 for a period”. However, the rapid manner by which NZD approaches the bottom of the expected range at 0.6350 was not exactly expected (overnight low of 0.6370). For now, there is no change in our view but if NZD were to register a NY closing below 0.6350, it would suggest Monday’s (04 Nov) high at 0.6466 is a more significant top than currently expected”.
Share
