In the view of UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang, NZD/USD is likely to trade within the 0.5950-0.6085 range in the near term.
Key Quotes
24-hour view: We highlighted yesterday that “upward momentum is showing signs of slowing, and this, combined with overbought conditions suggests NZD is likely to trade sideways today, probably in a range of 0.6025/0.6075.” Instead of trading in a range, NZD fell to a low of 0.5998 before rebounding. The brief drop to 0.5998 lacks momentum, and NZD is unlikely to weaken much further. Today, NZD is more likely to trade in a range of 0.5995/0.6055.
Next 1-3 weeks: Yesterday (22 Nov, spot at 0.6050), we indicated “while the NZD strength that started one week ago is intact, overbought short-term conditions could lead to a couple of days of consolidation first.” We added, “if NZD breaks below 0.6000, it would mean that 0.6100 is out of reach. In NY trade, NZD broke slightly below 0.6000 (low of 0.5998). The breach of the ‘strong support’ at 0.6000 indicates that the recent buildup in upward momentum has eased. From here, NZD is likely to trade in a range, probably between 0.5950 and 0.6085.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : FXStreet – https://www.fxstreet.com/news/nzd-usd-faces-some-renewed-consolidation-uob-202311231043
