New Zealand Dollar (NZD) is expected to trade in a range between 0.5895 and 0.5930 against US Dollar (USD). In the longer run, slowdown in momentum indicates that the odds of NZD reaching 0.5845 are low.
Odds of NZD reaching 0.5845 are low
24-HOUR VIEW: “NZD rose to a high of 0.5929 last Friday. Yesterday, Monday, when NZD was at 0.5910, we stated that ‘although there is scope for NZD to rise further today, overbought conditions indicate that any advance is likely part of a higher range of 0.5885/0.5935.’ However, NZD traded between 0.5901 and 0.5929 before closing at 0.5908. The price action provides no fresh clues, and we continue to expect range trading today, most likely between 0.5895 and 0.5930.”
1-3 WEEKS VIEW: “Last Thursday (31 Jul, spot at 0.5905), we expected NZD to ‘decline further to 0.5885, potentially reaching 0.5845.’ After NZD dropped to a low of 0.5857 last Friday and then rebounded, we indicated yesterday (04 Aug, spot at 0.5910) that ‘while our ‘strong resistance’ level at 0.5960 has not been breached yet, the slowdown in momentum indicates that the odds of NZD reaching 0.5845 are low.’ NZD subsequently traded in a quiet manner before closing at 0.5908 (-0.19%). Our view remains unchanged, but we are lowering the ‘strong resistance’ level to 0.5945 from 0.5960.”
