In the recent analysis by UOB analysts, a prediction was made that the New Zealand Dollar (NZD) could potentially test the 0.6115 level, provided it stays below 0.6185. The current trading range of NZD is between 0.6129 and 0.6164, with a closing price of 0.6150. Despite the lack of significant movement, the overall trend is showing weakness, indicating a possible decline to lower levels before any chance of recovery.
The price action on the 3-hour timeframe chart of NZDCAD reveals a bearish trend, as the price has formed two new lows and the 50-period SMA has crossed below the 100-period SMA. An entry point of interest for traders is the highlighted supply zone, which aligns with the 76% Fibonacci level and the trendline resistance. Analysts are expecting a bearish direction for NZDCAD with a target of 0.82350, and an invalidation point at 0.83890.
On the other hand, NZDUSD has broken below the pivot zone on the daily timeframe after crossing below the 100-period SMA on the 3-hour timeframe. This indicates a bearish sentiment, with a potential target of the highlighted demand zone around the 0.60100 region or the 0.60500 price region. Analysts are anticipating a bearish direction for NZDUSD as well, with a target of 0.60125 and an invalidation point at 0.61877.
The analysis of both NZDCAD and NZDUSD signals a bearish outlook for the New Zealand Dollar in the coming sessions. Traders and investors should closely monitor the key levels mentioned in the analysis to determine the potential entry and exit points for their positions. It is essential to stay informed about the market trends and be prepared to act swiftly in response to any significant price movements.
The current trends suggest a bearish sentiment for the New Zealand Dollar, with potential downside targets identified for both NZDCAD and NZDUSD. Traders should exercise caution and implement risk management strategies to protect their capital in the face of uncertain market conditions. As always, it is advisable to conduct thorough research and analysis before making any trading decisions in the forex market.