As a top investment manager and financial market journalist, I have identified a significant potential risk for the New Zealand Dollar (NZD) in the near term. According to UOB Group FX strategists Quek Ser Leang and Peter Chia, the NZD could break below the key support level of 0.6115, with the support at 0.6085 unlikely to provide much assistance.
Bearish Outlook for NZD
24-HOUR VIEW: Yesterday’s forecast of NZD remaining below 0.6220 proved accurate, as the currency fell to a low of 0.6132. This price action indicates a potential break below 0.6115 today, with little chance of support at 0.6085. Resistance levels are identified at 0.6160 and 0.6175.
1-3 WEEKS VIEW: The current corrective pullback could see NZD testing the major support at 0.6115. While a break below this level is possible, the momentum for a sustained drop remains low. However, increased momentum suggests a deeper pullback towards 0.6085. To maintain this momentum, NZD must not surpass the strong resistance level at 0.6205.
What Does This Mean for You?
For investors and individuals involved in the forex market, the potential break below 0.6115 for the NZD could signal a shift in market sentiment. It may be wise to monitor the currency closely and consider adjusting investment strategies accordingly. Keep an eye on key support and resistance levels to gauge the currency’s future movements.