There is room for the New Zealand Dollar (NZD) to test the 0.5570 level; a sustained break below this level seems unlikely. Longer term, the risk to the NZD is starting to tilt to the downside, but it must break clearly below 0.5570, note UOB Group FX analysts Quek Ser Leang and Lee Sue Ann.
NZD is starting to tilt lower
24-HOUR VIEW: “While we expected the NZD to ‘continue to weaken’ yesterday, we noted that ‘oversold conditions suggest any decline is unlikely to break clearly below 0.5570.’ Our view was validated, as the NZD fell to a low of 0.5572, bouncing to close at 0.5600 (-0.14%). Although the downward momentum has slowed a bit, there is room for the NZD to test the level. 0.5570. A sustained break below this level seems unlikely. Resistance is at 0.5610; current low has disappeared.”
1-3 WEEK VIEW: “Yesterday (Jan 9, pair at 0.5605) we noted that ‘the risk to the NZD is starting to tilt to the downside.’ However, we note that ‘must break clearly below 0.5570.’ The NZD subsequently fell to 0.5572 before bouncing. We continue to maintain the same view as long as 0.5645 (the ‘strong resistance level’ was at 0.5660 yesterday) is not breached.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
