Top investment managers Quek Ser Leang and Lee Sue Ann from UOB Group predict that the New Zealand Dollar (NZD) may continue to strengthen, with a potential test of 0.6260 on the horizon. Despite the recent surge to a high of 0.6236, the overbought conditions suggest that any further advance may be limited.
Analysis and Forecast
24-HOUR VIEW: The NZD closed strong at 0.6233 after a 1.51% surge, defying expectations of sideways trading. While a further advance is possible, the overbought conditions indicate that the currency may face resistance at 0.6260. The major resistance level at 0.6320 is unlikely to be breached, with support levels at 0.6205 and 0.6180.
1-3 WEEKS VIEW: Following the breakout above June’s 2023 high of 0.6223, the NZD is expected to continue its advance. The next significant resistance level is at the year-to-date high of 0.6320. However, the overbought conditions raise doubts about reaching this level. To sustain momentum, the NZD must not drop below 0.6140, a strong support level previously at 0.6090.
Impact on Your Finances
For investors and individuals involved in currency trading, the potential strength of the New Zealand Dollar (NZD) could present both opportunities and risks. It is important to monitor the market conditions closely and consider the advice of financial experts to make informed decisions.