NZD/USD is now forecasted to trade within the 0.6525-0.6690 range, in opinion of FX Strategists at UOB Group.
24-hour view: “We noted yesterday that ‘upward momentum has improved, albeit not by all that much’ and held the view that NZD ‘could grind higher but a clear break of 0.6630 appear unlikely’. Our view was correct as NZD rose to an overnight high of 0.6626. The daily closing is on the strong side (0.6622, +0.47%) and upward momentum has improved. From here, NZD could extend its gains and move above 0.6650. For today, the next resistance at 0.6690 is not expected to come into the picture. On the downside, a breach of 0.6585 (minor support is at 0.6600) would indicate the current upward pressure has eased.”
Next 1-3 weeks: “We have held a negative view in NZD since early last week. In our latest narrative from Monday (28 Sep, spot at 0.6550), we noted that ‘shorter-term momentum has slowed somewhat and 0.6490 may not come into the picture so soon’. NZD rose to an overnight high of 0.6603 and while our ‘strong resistance’ level at 0.6610 is still intact, the rapid loss in momentum indicates that the negative phase has run its course. From here, NZD is deemed to have moved into a consolidation phase and could trade between 0.6530 and 0.6700 for a period of time.”