NZD/USD expected to keep the rangebound trade unchanged – UOB

NZD/USD should remain sidelined, likely between 0.6585 and 0.6680, in opinion of FX Strategists at UOB Group.

Key Quotes

24-hour view: “NZD panned out largely as expected overnight, just edging below the 0.6585 support to a low 0.6582. Price action appears mixed here and a sideways pattern looks more likely today. Expected range: 0.6575 – 0.6615.”

Next 1-3 weeks: “Although NZD tested briefly below the key support of 0.6585 yesterday (low: 0.6582), there is hardly any follow through. As such, there is no change to our view from last Friday (17 Jan, spot at 0.6635) wherein NZD is expected to trade sideways between the two major levels of 0.6585 and 0.6680 for now. While the bottom of the expected range appears to be more vulnerable, there is another solid support at 0.6555 but this level is unlikely to come into the picture anytime soon.”