NZD/USD appears to have entered a consolidation phase between 0.5760 and 0.5790 – UOB Group
New Zealand Dollar (NZD) appears to have entered a consolidation phase between 0.5760 and 0.5790. In the longer run, the outlook for NZD remains negative; the next level to watch is 0.5730, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Outlook for NZD remains negative
24-HOUR VIEW: "While we expected NZD to 'decline further' last Friday, we highlighted that 'given the deeply oversold conditions, it remains to be seen if NZD can break below the next support at 0.5730.' We also highlighted that 'to sustain the oversold momentum, NZD must hold below 0.5800, with minor resistance at 0.5785.' NZD subsequently traded between 0.5756 and 0.5785, closing at 0.5776 (+0.16%). NZD appears to have entered a consolidation phase. Today, we expect NZD to trade between 0.5760 and 0.5790."
1-3 WEEKS VIEW: "We reiterated our negative view on NZD last Friday, highlighting that 'the outlook for NZD remains negative, and the next level to watch is 0.5730.' We also highlighted that 'the outlook for NZD remains negative as long as 0.5830 (‘strong resistance’ level) is not breached.' There is no change in our view."
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