NZD in consolidation: 0.5665 is a tough barrier to break

The New Zealand dollar faces a critical level at 0.5665, which UOB Group analysts consider difficult to breach. Experts predict a more predictable trajectory for the NZD in the coming days, with fluctuations contained between 0.5605 and 0.5695.

Controlled weakening of the NZD

In recent sessions, the NZD has shown signs of stabilization after a period of pressure. After touching the low of 0.5607, the currency rebounded and is maintaining a positive momentum, albeit moderate.

The upward movement has begun to take shape, but lacks the strength to establish a sustained rise scenario. So far, the pair is trading above 0.5620, with analysts dismissing a clear break above 0.5665. It is also unlikely that the next resistance at 0.5695 will be tested in the short term.

Immediate supports: 0.5630 and 0.5620

Medium-term outlook reveals technical basis

Considering the 1 to 3-week window, a more balanced picture for the New Zealand dollar emerges. The weakening that has dominated since the end of last month has shown signs of stabilization, particularly after the NZD touched 0.5607.

The formation of a positive divergence in momentum indicators suggested a reduction in the intensity of the negative movement. This technical pattern, combined with the inability of the pair to break below 0.5600 in the following days, indicates the consolidation of the previous weakness.

Although the level of 0.5660 ( previously at 0.5680) has not yet been violated, the technical scenario has changed significantly. The pair found a base at 0.5607 and has started trading with greater stability.

Range consolidated at least until 0.5695

With the downward momentum subdued, the expectation is that the NZD will remain in consolidation within a defined range. Between 0.5605 and 0.5695, the pair should alternate between periods of testing higher levels and technical retracements.

A clear break above 0.5665 remains unlikely without additional signs of strength. The market will watch whether the currency can establish higher supports or retreat to test the lower levels of the consolidated range.