Key Moments
- NZD/USD is expected to fluctuate within a 0.5760 to 0.5800 trading band in the near term.
- Analysts at UOB Group see room for the recent NZD pullback to extend, while identifying strong support at 0.5720.
- The current technical outlook remains intact as long as the 0.5800 resistance level is not decisively broken.
Short-Term Trading Outlook
UOB Group foreign exchange analysts Quek Ser Leang and Peter Chia now expect the New Zealand Dollar to spend the near term moving within a relatively narrow range against the US Dollar, between 0.5760 and 0.5800.
In their latest 24-hour view, they recalled that they had previously indicated NZD “could edge lower and test 0.5740” and that “the major support at 0.5720 is unlikely to come into view”. Instead, the currency pair slipped only to 0.5745 before reversing higher and finishing the session up 0.37% at 0.5790.
The analysts noted that there has been a modest improvement in upward momentum. However, they judged that rather than extending its advance, NZD is “more likely to trade in a range between 0.5760 and 0.5800” over the current session.
Medium-Term Technical Perspective
Looking beyond the immediate session, Quek and Chia reiterated their 1- to 3-week view that the recent retracement in NZD remains incomplete. They referred back to their comments from 05 Jan, when NZD/USD was trading around 0.5755, emphasizing that the pullback from last month’s high of 0.5853 “has scope to extend”.
At the same time, they continued to highlight a strong technical floor at 0.5720, stating that “any decline is expected to face strong support at 0.5720”. Their broader view remains unchanged on the condition that the 0.5800 level – which they describe as a “strong resistance” – is not broken.
Key Levels to Watch
| Horizon | Level | Comment |
|---|---|---|
| Intraday | 0.5760 – 0.5800 | Expected trading range for NZD/USD |
| Support | 0.5740 | Previously cited potential test level |
| Major support | 0.5720 | Viewed as strong support on a 1-3 week basis |
| Strong resistance | 0.5800 | Key level whose breach would invalidate the current 1-3 week view |
| Prior high | 0.5853 | Last month’s peak from which the pullback began |
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