According to UOB Group FX analysts Quek Ser Leang and Lee Sue Ann, there is a possibility for the New Zealand Dollar (NZD) to fall towards 0.5975 before stabilizing. The overall outlook suggests that the NZD could trade within a range of 0.5935 to 0.6080 in the near future.
Short-Term View:
Despite a previous expectation for NZD strength, the currency actually experienced a sharp decline to 0.5995, closing 1.33% lower at 0.5996. With the NZD currently oversold, there is a likelihood for it to drop further to 0.5975 before finding stability. Any potential recovery is expected to be limited, with resistance seen at 0.6040 and 0.6020.
Medium-Term View:
Following a positive stance on NZD earlier in the month, recent price action has indicated a shift in the currency’s strength. Despite reaching a high of 0.6084, NZD has broken below key support levels, suggesting a potential range-bound trading between 0.5935 and 0.6080 in the coming weeks.
Analysis:
Overall, investors and traders should be cautious of a possible decline in the New Zealand Dollar towards 0.5975, with a range-bound trading environment between 0.5935 and 0.6080 expected. It is important to monitor key support and resistance levels to navigate potential trading opportunities in the NZD.