Downward momentum has increased somewhat; New Zealand Dollar (NZD) is likely to drift lower towards 0.5625. In the longer run, for the time being, NZD is likely to trade in a range between 0.5595 and 0.5720.
NZD probably to trade between 0.5595 and 0.5720
24-HOUR VIEW: “We expected NZD to ‘trade in a range between 0.5625 and 0.5680’ yesterday. NZD then traded in a 0.5637/0.5664 range, closing at 0.5643 (-0.24%). Downward momentum has increased somewhat, and today, NZD is likely to drift lower towards 0.5625. A clear break below this level seems unlikely. Resistance is at 0.5655, followed by 0.5670.”
1-3 WEEKS VIEW: “In our latest narrative from last Thursday (06 Feb, spot at 0.5685), we indicated that ‘there has been a tentative buildup in momentum, and NZD could rise gradually to 0.5725.’ Since then, NZD has not been able to make any headway on the upside, and the buildup in momentum has largely faded. For the time being, NZD is likely to trade in a range between 0.5595 and 0.5720.”
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