Created
: 2024.10.10
2024.10.10 18:14
The New Zealand Dollar (NZD) is likely to consolidate between 0.6050 and 0.6100. In the longer run, oversold weakness has not stabilised, but NZD must break clearly below 0.6050 before further sustained decline is likely, UOB Group's FX analysts Quek Ser Leang and Lee Sue Ann note.
24-HOUR VIEW: "Yesterday, we indicated that 'tentative signs of slowing momentum combined with the still oversold conditions suggest NZD is likely to trade in a range.' Our view of range trading was incorrect, as NZD plummeted to a low of 0.6053. The sharp and swift decline appears to be overdone. This, combined with tentative signs of slowing momentum, suggests NZD is unlikely to weaken much further. Today, NZD is more likely to consolidate between 0.6050 and 0.6100."
1-3 WEEKS VIEW: "We turned negative in NZD last Wednesday (02 Oct, spot at 0.6285), indicating that 'the pullback in NZD could potentially reach 0.6225.' As NZD falls, we track the progress of the decline, and in our most recent narrative from Tuesday (08 Oct, spot at 0.6125), we indicated that NZD 'still seems weak, but it remains to be seen if it has enough momentum to reach the next major support at 0.6075.' Yesterday, NZD plummeted below 0.6075, reaching a low of 0.6053. While the weakness in NZD has not stabilised, conditions are severely oversold. To continue to decline in a sustained manner, NZD must break and remain below 0.6050. The probability of NZD breaking clearly below 0.6050 will remain intact as long as 0.6145 ('strong resistance' level previously at 0.6195) is not breached. Looking ahead, the next level to monitor below 0.6050 is 0.6005."
Created
: 2024.10.10
Last updated
: 2024.10.10
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy