The analysts at UOB have pointed out that the New Zealand Dollar (NZD) could potentially test the 0.6115 level, with a condition that it remains below 0.6185. The possibility of a significant break below this level is not expected at this time. In the longer term, if NZD does drop below 0.6115, it could potentially move further towards 0.6085. Earlier today, the currency traded between 0.6129 and 0.6164, closing mostly unchanged at 0.6150. Despite the stagnant movement, the overall trend remains slightly weak, hinting at a possible test of lower levels before any chance of recovery.
The price action on the 3-hour timeframe chart of NZDCAD shows that price has recently formed two new lows after clearing the previous lows, causing a bearish trend to form. Further confirming this trend is the crossing of the 50-period SMA below the 100-period SMA. An area of interest for an entry would be the highlighted supply zone, which aligns well with 76% of the Fibonacci and the trendline resistance. The analysts’ expectations indicate a bearish direction with a target of 0.82350 and an invalidation point at 0.83890.
The NZDUSD chart has recently broken below the pivot zone on the daily timeframe after dipping below the 100-period SMA on the 3-hour timeframe. This suggests that the price is likely heading towards the highlighted demand zone around the 0.60100 region, or at least the 0.60500 price region. Analysts predict a bearish direction for NZDUSD with a target of 0.60125 and an invalidation point at 0.61877.
The New Zealand Dollar (NZD) is currently facing some downward pressure in the short term, with the potential to reach lower levels if certain key levels are breached. Traders and investors will need to closely monitor the technical indicators and chart patterns to determine the future movement of NZD in the forex markets.
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