Nzdusd Consolidates Uob Group

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Nzdusd Consolidates Uob Group

Nzd/Usd Consolidates In 0.6050-0.6100 Range - Uob Group

According to a senior FX analyst from the UOB Group, the NZD/USD pair is highly likely to show consolidation between 0.6050 & 0.6100. They added that the NZD/USD is still experiencing oversold weakness and it has yet to stabilize.

In order for the bearish trend to continue, the NZD must close below the 0.6050 level. Similarly, a break above 0.6100 will be a sign that NZD/USD is ready for a bullish run.

Nzd/Usd Shows Weak Bearish Momentum

Yesterday, the NZD/USD showed signs of weak momentum, and the indicators were also showing oversold conditions. That's the reason why the NZD/USD is still in a trading range.

However, the decline in the NZD/USD was a little too much as it moved towards 0.6053. Now, it seems that the bearish momentum has slowed down, and the pair is consolidating.

For the next 1 to 3 weeks, UOB Group will still be bearish about the NZD/USD pair. They added that the NZD/USD is at risk of touching the 0.6225.

They believe that the current momentum is not enough to push the NZD/USD towards 0.6075 support. In order for the NZD/USD to continue its bearish trend, a break below 0.6050 is needed.

As long as the NZD/USD doesn't close above 0.6145 in the D1 chart, the chances of moving lower to 0.6050 are very high. As for the upside, the most significant resistance is around 0.6150 followed by the next one at 0.6200.

It is also important to note that the US Dollar is enjoying strong demand right now. This stems from the rumors that the Fed is likely done with oversized rate cuts as the labor market is still pretty strong.

If this turns out to be true, it would mean more downside for the NZD/USD. In that case, the NZD/USD could likely move below 0.6000 region and turn a new chapter in the pair's history.

At the same time, it is important to note that the US elections are starting next month, which could make things difficult for the US Dollar.

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