The New Zealand Dollar (NZD) is likely to trade between 0.5935 and 0.5965. There might be some upward movement, but it’s unclear if it will reach 0.6000. In the last 24 hours, NZD has traded steadily between 0.5948 and 0.5971, indicating a range trading phase. The recent softness suggests a short-term trading range of 0.5935 to 0.5965.

Uncertain Targets

In the next one to three weeks, upward momentum appears to be building, but it’s uncertain if NZD will hit 0.6000. If it drops below the strong support level of 0.5910, it would indicate weakened momentum. Market forecasts and investments come with risks and uncertainties. It’s essential to do thorough research before investing, as there is a chance for financial loss. All future trading statements carry risks. Currently, we see the New Zealand Dollar trading within a tight range, likely between 0.5935 and 0.5965. This shows market indecision, even after last month’s Q2 2025 CPI data was slightly above the Reserve Bank of New Zealand’s forecast at 3.1%. For those trading derivatives, short-term strategies like selling strangles may be a good option to profit from expected low volatility. We do believe upward momentum is increasing, which could challenge the 0.6000 resistance level soon. This belief is supported by the Reserve Bank of New Zealand’s firm tone in their August 6 statement and the strong July 2025 employment numbers, showing unemployment steady at 4.2%. Traders might consider buying call options with a strike price just above 0.6000, betting on a breakout based on these fundamentals.

Protective Strategies

However, we need to stay cautious since a solid break above 0.6000 is not assured. A similar situation occurred in early 2024 when the pair repeatedly struggled to maintain gains above this critical level, leading to a sell-off. A drop below the important support at 0.5910 would suggest that upward momentum has weakened, undermining the bullish outlook. Given this uncertainty, protective strategies are crucial for anyone involved. Traders with long positions should think about placing stop-loss orders or buying put options with a strike price below the 0.5910 support level to protect against reversals. A bull call spread, which involves buying one call option and selling another at a higher strike price, could also be a wise way to limit risk if the rally stalls. Create your live VT Markets account and start trading now.

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