The New Zealand Dollar (NZD) has recently experienced a two-week period of weakness, but analysts predict a change in the currency’s trend. According to FX analysts from UOB Group, Quek Ser Leang and Lee Sue Ann, the NZD is likely to trade in a sideways range of 0.5915/0.5955 in the near future. Alternatively, there is a possibility that the current recovery phase could extend to 0.5990. The closest resistance level is currently at 0.5955.
In the 24-hour view, analysts observed that the NZD showed signs of strength, but it was unclear if it could break the solid resistance level at 0.5990. The currency briefly rose to 0.5985 before pulling back to close largely unchanged at 0.5951. This pullback, combined with overbought conditions and slowing momentum, suggests that the upside risk has faded temporarily. Analysts predict that the NZD is likely to trade sideways in the next 24 hours, possibly within a range of 0.5915/0.5955.
Looking at the 1-3 weeks view, analysts noted that the recent two-week weakness in the NZD has come to an end. They also suggested that the current recovery phase could potentially extend to 0.5990. Despite a brief rise to 0.5985 in NY trade, the currency pulled back. Analysts maintain the view that only a breach of 0.5890, which is considered a strong support level, would indicate that reaching 0.5990 is unlikely.
Overall, the NZD is expected to see some stability and potentially further recovery in the coming weeks. The current resistance level at 0.5955 may provide some challenges, but if the currency is able to break through, it could extend its recovery phase to 0.5990. Traders and investors will need to monitor the currency’s performance closely in order to take advantage of any potential opportunities that may arise in the market.
