Current price movements are likely part of a range trading phase likely between 0.5620 and 0.5690. In the longer run, NZD is likely to continue to rise, potentially reaching the major resistance at 0.5750, ING’s FX analyst Francesco Pesole notes.

NZD is likely to continue to rise

24-HOUR VIEW: “Yesterday, we held the view that NZD ‘could break above 0.5700, but it might not be able to maintain a foothold above this level.’ However, NZD did not break above 0.5700, trading between 0.5622 and 0.5688. The current price movements are likely part of a range trading phase, probably between 0.5620 and 0.5690.”

1-3 WEEKS VIEW: “Our update from yesterday (21 Jan, spot at 0.5680) remains valid. As highlighted, NZD ‘is likely to continue to rise, potentially reaching the major resistance at 0.5750.’ On the downside, should NZD break below 0.5600 (no change in ‘strong support’ level) it would mean that the current upward pressure has eased.”