According to UOB Group FX analysts Quek Ser Leang and Lee Sue Ann, the New Zealand Dollar (NZD) is expected to trade in a range of 0.6230/0.6290 in the short term. However, in the longer run, NZD is anticipated to continue its upward momentum, possibly aiming for the year-to-date high of 0.6320.
Short-Term Outlook: Bulls in Control
In the 24-hour view, NZD surpassed expectations by reaching 0.6298 before pulling back to close at 0.6257. The overbought conditions suggest a potential consolidation phase, with NZD likely to trade between 0.6230 and 0.6290 in the near term.
1-3 Weeks Forecast: While NZD has shown strength by hitting 0.6298, there is a lack of clear momentum for further upside. The focus remains on whether NZD can breach the year-to-date high of 0.6320. A break below 0.6200 would indicate a weakening trend for NZD.
Overall, the outlook for the New Zealand Dollar (NZD) suggests a potential range-bound movement in the short term, with a bullish bias in the longer run towards the key resistance level of 0.6320. Traders and investors should monitor key support and resistance levels for potential trading opportunities.