The New Zealand Dollar (NZD) is currently expected to continue range trading in the near future, with analysts predicting a range between 0.5875 and 0.5920. Despite the possibility of further NZD weakness, analysts point out that severely oversold conditions suggest limited downside potential for the currency. One key level to monitor is 0.5850, according to FX analysts Quek Ser Leang and Peter Chia from UOB Group.
After experiencing a low of 0.5878, there were indications of limited downside potential for the NZD due to severely oversold conditions and tentative signs of slowing momentum. As predicted, the NZD traded in a narrower range of 0.5884 to 0.5905, closing at 0.5889. Despite the lack of fresh clues from the price action, analysts continue to foresee further range trading in the near future with an expected range of 0.5875 to 0.5915.
Looking ahead at the 1-3 weeks view, analysts reiterate their stance on the potential for further NZD weakness while acknowledging the presence of severely oversold conditions. The key level to watch for is 0.5850, although the limited downside potential is still emphasized. Despite the possibility of further weakness, the overall outlook remains cautious yet steady.
The future of range trading for the New Zealand Dollar (NZD) is expected to be characterized by limited downside potential and further range trading within the predicted range of 0.5875 to 0.5920. While oversold conditions suggest caution, analysts remain watchful of key levels like 0.5850 for any potential shifts in the market. As the NZD continues to navigate through these uncertain times, traders and investors will need to stay vigilant and adapt to the changing market conditions to make informed decisions.