The New Zealand Dollar (NZD) has been facing downward pressure and there is potential for it to drop below the key level of 0.6000. According to UOB Group FX strategists Quek Ser Leang and Peter Chia, the recent movements in the NZD suggest a bearish trend.
In the short-term outlook, when the NZD was trading at 0.6045, it was expected to decline. While the support levels of 0.6030 and 0.6005 were mentioned, the currency actually dropped even lower, going as far down as 0.6006. However, there seems to be a slight rebound in early Asian trading, indicating a possible pause in the downward momentum. This could lead to a sideways trading range between 0.6010 and 0.6045 for the NZD.
Looking at the medium-term view, the downward momentum in the NZD has been increasing steadily. The resistance level of 0.6070 is crucial and if it remains unbreached, there is a likelihood of further decline in the NZD. The next key level to watch is 0.6005, which could be breached if the bearish trend continues. While oversold conditions may lead to some sideways movement in the short-term, a sustained decline is possible if the resistance level is not broken.
The New Zealand Dollar (NZD) is facing significant downward pressure and there is potential for it to drop below the key level of 0.6000. The technical analysis suggests that the bearish trend is likely to continue both in the short-term and medium-term. Traders and investors should closely monitor the support and resistance levels mentioned to gauge the future direction of the NZD.
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