The New Zealand Dollar (NZD) is likely to trade in a range between 0.5790 and 0.5850. In the long term, further strength of the New Zealand dollar is not ruled out, but it must first cross 0.5855 before a move to 0.5885 is expected, noted FX analysts at UOB Group, Que Ser Liang and Peter Chia.
Further strength of the New Zealand dollar is not ruled out
24 Hour View: “The strong rally in the New Zealand dollar reaching a high of 0.5851 is strongly overbought. This, combined with the pullback from the high, suggests that the New Zealand dollar is unlikely to rise much further. Today, the New Zealand dollar is likely to trade in a range, perhaps between 0.5790 and 0.5850.”
1-3 Week View: “After trading in a range for several days, the NZD has risen this week, reaching a high of 0.5851 yesterday. While further NZD strength appears likely, it must first clear key resistance at 0.5855 before a move to 0.5885 is expected. The likelihood of the NZD breaking clearly above 0.5855 will remain intact as long as 0.5765 is not there. breach.”
