The New Zealand dollar has been on the back foot due to the trade wars. What’s next?
Here is their view, courtesy of eFXdata:
NAB discusses NZD/USD technical outlook and adopts a bearish bias in the near and medium-term. NAB now targets NZD/USD at 0.6435 in 1-.month, and at 0.6250 in 3-months.
“Last week’s close below the previous 2019 range of 0.6575/80 to 0.6939/42 confirms that NZD/USD has returned to its multi-year downtrend. Since late 2016 NZD/USD has trended lower in a perfect parallel downtrend channel. The base of the channel is currently at 0.6250/70 and provides an excellent MT target.
The confirmed break of the previous 2019 range / rectangle has a textbook target at 0.6200/50 and coincides with the base of the channel in time,” NAB notes.
“ST, MT and LT momentum confirm a comprehensive negative MT momentum bias and maintain immense downward pressure in the coming weeks to months,” NAB adds.
For lots more FX trades from major banks, sign up to eFXplus
By signing up for eFXplus via the link above, you are directly supporting Forex Crunch.Get the 5 most predictable currency pairs