NZD/USD: Likely to consolidate within a range of 0.5595/0.5630 – UOB Group
Momentum indicators are mostly flat; New Zealand Dollar (NZD) is likely to consolidate within a range of 0.5595/0.5630. In the longer run, NZD is expected to move lower; if it breaks below 0.5565, it could decline further to 0.5540, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Momentum indicators are mostly flat
24-HOUR VIEW: "Yesterday, we highlighted that 'the price movements are likely part of a consolidation phase'. We expected NZD to 'trade between 0.5590 and 0.5625'. NZD then consolidated within a relatively narrow range between 0.5598 and 0.5618. Momentum indicators are mostly flat, and we continue to expect NZD to consolidate today, most likely within a range of 0.5595/0.5630."
1-3 WEEKS VIEW: "Last Thursday (20 Nov, spot at 0.5610), we highlighted that 'given the sharp increase in downward momentum, we expect NZD to weaken to 0.5585, and potentially 0.5565'. After NZD dropped to 0.5582, we indicated on Friday that we 'continue to expect a lower NZD and if it breaks below 0.5565, it could decline further to 0.5540'. Although downward momentum is starting to slow, as long as 0.5640 (no change in ‘strong resistance’ level), is not breached, there is still a chance for NZD to break below 0.5565."
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