The New Zealand Dollar (NZD) has been facing a downward trend recently, with FX strategists Quek Ser Leang and Peter Chia from UOB Group noting that there is still potential for the NZD to drop below 0.6000. In the 24-hour view, it was mentioned that even though the NZD declined as expected, it dropped more than anticipated, almost reaching 0.6005. The rebound in early Asian trading suggested a potential sideways trading range of 0.6010/0.6045, given the oversold conditions and slowing momentum.
Looking at the 1-3 weeks view, it was highlighted that downward momentum has been building, indicating a potential for sustained decline in the NZD. The chance of NZD breaking below 0.6030 has also increased, with 0.6005 being the next level to watch. The NZD subsequently fell to a low of 0.6006, suggesting that oversold short-term conditions could lead to a few days of sideways trading. As long as the strong resistance level at 0.6070 is not breached, there is still room for NZD to drop to and possibly below 0.6005.
The current analysis of the New Zealand Dollar (NZD) indicates a potential for further decline below 0.6000. The oversold conditions and downward momentum suggest that the NZD might continue on a downward trend in the near future. Traders and investors should closely monitor the support levels at 0.6030 and 0.6005, as well as the resistance level at 0.6070, for potential trading opportunities. It will be interesting to see how the NZD performs in the coming days and weeks, given the current market conditions and economic factors influencing its movement.