The New Zealand Dollar (NZD) is facing a likely decline, according to UOB Group’s FX analysts Quek Ser Leang and Peter Chia. The major support level at 0.6005 is expected to be out of reach, with another support level at 0.6030. In the longer run, NZD is expected to continue declining, with the key level to watch at 0.6005.
In the 24-hour view, NZD is expected to see further declines after trading between 0.6074 and 0.6105 and closing at 0.6083. The sharp increase in momentum suggests that NZD will continue to decline, with support levels at 0.6005 and 0.6030 and resistance levels at 0.6080 and 0.6095.
Looking ahead to the 1-3 week view, UOB Group’s analysts had already turned negative on NZD two weeks ago. While the oversold weakness has not yet stabilized, NZD must break and remain below 0.6050 for sustained decline to occur. The analysts highlighted that the probability of NZD breaking below 0.6050 remains intact as long as 0.6145 is not breached. Despite 0.6050 not being clearly breached yet, the increase in short-term momentum suggests that NZD is likely to decline further, with the key level to watch at 0.6005.
Overall, the outlook for the New Zealand Dollar is bearish, with expectations for further declines in both the short term and the longer run. With major support levels at 0.6005 and 0.6030, NZD is likely to continue its downward trend. Resistance levels are at 0.6080 and 0.6095 in the short term, with a strong resistance level at 0.6115. Traders and investors should closely monitor the key levels mentioned by UOB Group’s FX analysts for potential trading opportunities.
