Oversold decline might lengthen to 0.5985 earlier than stabilisation may be anticipated. Within the longer run, potential for additional declines could possibly be restricted; the degrees to observe are 0.5985 and 0.5970, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann be aware.
The degrees to observe are 0.5985 and 0.5970
24-HOUR VIEW: “Our view for NZD to commerce in a variety yesterday was incorrect. As an alternative of buying and selling in a variety, it fell sharply to 0.5993. Though oversold, the decline might lengthen to 0.5985 earlier than stabilisation may be anticipated. At present, a sustained break under this degree appears unlikely. Resistance is at 0.6020; a breach of 0.6040 would imply that the weak point in NZD has stabilised.”
1-3 WEEKS VIEW: “On Tuesday (22 Oct, spot at 0.6030), we indicated that ‘the current value motion signifies that 0.6005 is inside attain.’ We added, ‘Wanting forward, the subsequent degree to observe under 0.6005 is 0.5985.’ Yesterday, NZD dropped under 0.6005, reaching a low of 0.5993. Whereas we proceed to anticipate NZD to say no, the weak point that began early this month seems to be overextended, each time- and price-wise. In different phrases, the potential for additional decline could possibly be restricted. The degrees to observe are 0.5985 and 0.5970. Ought to NZD break above 0.6060 (‘sturdy resistance’ degree beforehand at 0.6085), it could imply that NZD will not be declining additional.”
