The New Zealand Dollar (NZD) is expected to trade in a sideways range of 0.6120/0.6160, according to UOB Group FX strategists Quek Ser Leang and Peter Chia. Despite being overbought, the NZD’s upward momentum shows no signs of slowing down, with a potential target of 0.6223 in sight.
Sideways Trading Phase Continues
In the 24-hour view, NZD is expected to trade within the range of 0.6120/0.6160, following a sideways trading phase. Yesterday’s range was between 0.6129 and 0.6169, closing at 0.6141 (-0.24%). Today, NZD is projected to remain within the 0.6120/0.6160 range.
In the 1-3 weeks view, the overbought advance of the NZD is still gaining momentum, potentially reaching June’s high of 0.6223. However, to sustain this upward trend, NZD must stay above the support level of 0.6090.
Analysis and Implications
For investors and traders, the forecasted range of 0.6120/0.6160 for the NZD offers an opportunity for short-term trading strategies. The potential target of 0.6223 presents a chance for profit-taking or setting new long positions.
It is crucial to monitor the support level of 0.6090, as a break below this level could indicate a shift in momentum and a possible downward trend for the NZD. Keeping a close eye on market developments and technical indicators will be essential for making informed trading decisions.