NZD/USD is likely to move within a rangebound theme between 0.7115 and 0.7260 in the short-term horizon.
24-hour view: “Yesterday, we expected the rebound in NZD to extend but we were of the view that NZD ‘is unlikely to challenge the strong resistance at 0.7210’. Our view was not wrong as the advance in NZD stalled at 0.7199. The underlying tone has improved somewhat and this could lead to NZD edging higher to 0.7220. The next resistance at 0.7260 is not expected to come into the picture. Support is at 0.7170 followed by 0.7145.”
Next 1-3 weeks: “We have expected NZD to weaken since last week. Our latest narrative was from Tuesday (08 Mar, spot at 0.7115) where we indicated that ‘a break of 0.7100 is likely’. However, the major support at 0.7100 remains intact and NZD rebounded strongly to 0.7199 during NY session yesterday (10 Mar). While our ‘strong resistance’ level at 0.7210 is still intact, rapid loss in momentum suggests that NZD is unlikely to weaken further. NZD is more likely to trade sideways for now, expected to be within a 0.7115/0.7260 range.”