NZD – New Zealand Dollar: NZD stays in tight consolidation

The NZD/USD pair remains in a high-level range-bound consolidation. It is clearly capped around the 0.590 area, while on the downside it has managed to hold above 0.5850. Overall, the price action is relatively narrow, suggesting a standoff and “wait-and-see” conditions.

The larger support is expected at 0.5760, followed by 0.5670 and the 0.56 area.

On the upside, the bigger resistance zone is forecast around 0.595. The 0.60 level still appears to be an important psychological barrier. The pair also failed to break through this barrier earlier - specifically around the May 6 high at 0.5990 and the May 29 high at 0.5993. If the pair can finally break above this time, it may be an early sign of a new leg higher, with extension targets initially seen at 0.6090 and 0.6120.

Forecast range:
Resistance: 0.5900 – 0.5950 – 0.6000 – 0.6090 – 0.6120
Support: 0.5850 – 0.5760 – 0.5670 – 0.5600

Any questions? contact our professional analysis team