Nzdusd To Stay Weak Uob

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Nzdusd To Stay Weak Uob

Nzd/Usd To Stay Weak Below 0.6050 - Uob Group

According to FX analysts from UOB Group, the NZD/USD pair will stay weak as long as it is trading below the 0.6050 handle.

For now, the NZD/USD is in the consolidation phase and is trading in the range of 0.6070 to 0.6110. It seems that the NZD/USD is still experiencing the oversold weakness, which has yet to stabilize.

Nzd/Usd Faces Resistance At 0.6100

clear break of the 0.6050 will be needed for the NZD/USD to resume its downtrend once again. But if this doesn't happen, the NZD/USD pair will stay stuck in its trading range.

If we look back, the lower limit for the NZD was around 0.6071. Similarly, the upper limit for the NZD was around 0.6102. This was a lot lower than the range defined by the UOB Group.

As long as the bearish or the bullish momentum doesn't increase, the consolidation phase in NZD/USD will likely continue. The range for the NZD/USD will be around 0.6070 - 0.6110 for today.

As for the long term forecast during the next 1 to 3 weeks, the target of 0.6070 is still on the cards. But if the NZD/USD can manage to break below 0.6050, it will mean a revisit to the 0.6000 handle.

As long as the NZD/USD is trading below 0.6145, the chances of breaking below 0.6050 remains high. And once that happens, the next stop will be 0.6005 - 0.6000.

In the meantime, the NZD/USD seems to be in a tough position with the US Dollar in the driving seat. However, the US Dollar is also vulnerable due to the upcoming rate cuts and the November elections.

If we look at the way up, the first resistance is around 0.6100, followed by the next level at 0.6150. Beyond that, the round level of 0.6200 is located, which is also an important resistance zone.

The bottom line is that UOB Group is bearish on the NZD/USD provided that it remains in its trading range.

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