- Analytics
- News and Tools
- Market News
- NZD/USD: A drop below 0.5565 loses traction – UOB
NZD/USD: A drop below 0.5565 loses traction – UOB
In light of the recent price action, a breakdown of 0.5565 in NZD/USD appears out of favour for the time being, suggest FX Strategists at UOB Group Quek Ser Leang and Peter Chia.
Key Quotes
24-hour view: “Yesterday, we held the view that NZD ‘could dip to 0.5600 first before the risk of a rebound would increase’. NZD dropped more than we expected but it rebounded strongly from the next support at 0.5565 (high has been 0.5733). The sharp and swift rebound appears to be running ahead of itself and NZD is unlikely to advance much further. For today, we expect NZD to trade within a range of 0.5630/0.5740.”
Next 1-3 weeks: “We turned negative in NZD 2 weeks ago. In our latest narrative from yesterday (28 Sep, spot at 0.5635), we indicated that NZD “is likely to break 0.5600 but it remains to be seen whether NZD can decline to the next support level at 0.5565”. NZD subsequently dropped to 0.5565 before rebounding strongly. Downward momentum has waned and the strong rebound amidst oversold conditions suggests the chance of NZD breaking below 0.5565 is low. That said, only a breach of 0.5755 (no change in ‘strong resistance’ level from yesterday) would indicate that NZD is not weakening further.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
