Bank of America Global Research sees potential for the NZD to outperform the British pound and euro over the coming weeks:
“A more hawkish RBNZ stands in contrast to our expectations for the rest of the G10 Commonwealth countries, making it an attractive G10 long. This is compounded by significantly short speculative market positioning in NZD,” Bank of America said.
However, gains could remain dependent on broader market sentiment. Continued strength in the US economy and uncertainty surrounding the US-Iran conflict may limit demand for risk-sensitive currencies, even as expectations of further RBNZ tightening provide underlying support.
EUR/USD remains under pressure, trading below its key moving averages, which are all pointing lower. RSI at 39 confirms weak momentum but is not yet oversold, while declining ATR suggests volatility is easing.
Support potentially sits around 1.1360, followed by 1.1325. A break lower could reinforce the bearish trend. Initial resistance is perhaps near 1.1480, with a stronger barrier around 1.1560–1.1615.
Trading involves risk and may not be suitable for all investors. The information provided in this article is for educational purposes only and does not constitute financial advice. Always conduct thorough research and seek professional advice before making any investment decisions.
Join Now
