Following the recent price action in NZD/USD, FX Strategists at UOB Group expect the pair to remain side-lined for the time being.
Key Quotes
24-hour view: “NZD traded between 0.5881 and 0.5973 yesterday, relatively close to our expected range of 0.5890/0.5990. The underlying tone has weakened and a dip below the strong support at 0.5880 would not be surprising. That said, 0.5850 is another strong support and this level may not yield as easily. On the upside, 0.5980 is likely strong enough to cap any intraday recovery (minor resistance is at 0.5950).”
Next 1-3 weeks: “While our ‘strong support’ level of 0.5880 ‘survived’ for the second straight day (overnight low of 0.5881), the price action is enough to indicate that last Friday’s (27 Mar) high of 0.6067 is a short-term top. From here, the immediate risk is tilted to the downside but any weakness is viewed as part of a 0.5820/0.6020 range (a sustained decline below 0.5820 appears unlikely for now). In other words, NZD is likely to trade within a broad range a period.”
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