Nzdusd Unlikely To Break Support Uob

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Nzdusd Unlikely To Break Support Uob

Nzd/Usd Unlikely To Break Under 0.5570 - Uob Group

The NZD/USD pair is highly likely to test 0.5570 support, but a break under it is out of the equation for now. But in the long run, the NZD is at risk of more downside ahead. However, any further downside will depend on a clear break of the 0.5570 level.

In the short term, the UOB Group believes that NZD will weaken and fall to its nearest support levels. However, the pair seems to be getting into oversold conditions which will stop a break under 0.5570.

Nzd/Usd To Find Support

In fact, the NZD/USD had already dropped near 0.5572, which was solid support. However, the pair has now rebounded back above the 0.5600 and is now eyeing the 0.5570 handle.

As of now, any clear break below the recent support (0.557) seems highly unlikely. The resistance is seen around 0.5610, while a break under 0.5625 will mean the selling pressure has faded.

During the next 1 to 3 weeks, the NZD/USD is at risk of further downside given the technical & fundamental data. However, the 0.5570 remains a key level to watch for the NZD/USD traders.

So, as long as the 0.5645 resistance stays intact, the NZD/USD is highly likely to touch its support levels. But even then, it will not cross the support levels & will start to rebound higher again.

One key risk for the NZD/USD pair is the Donald Trump who will be joining the office in few days at best. That's the one risk factor that has some major implications for the NZD/USD pair.

Trump has been talking about putting tariffs on every country and New Zealand is no exception. So, we can't exactly rule out any negative implications for the NZD.

In fact, any tariffs on China will also affect the value of NZD as China is a close trading partner of New Zealand. So, any tariffs on China will also ultimately effect the New Zealand Dollar.

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