The market is currently seeing a short-term battle between buyers and sellers. There’s immediate support at 0.59376, while resistance is at the 100-day moving average of 0.59595. If the price breaks through either level, it could lead to more movement. If it drops below support, attention will shift to the 200-bar moving average at 0.59058. On the other hand, if it surpasses the 100-day MA, targets could rise to August’s high of 0.5995, and even 0.60301.

Stuck In A Narrow Range

The NZDUSD is currently stuck in a narrow range, showing uncertainty in the market. The price is unable to rise above the 100-day moving average at 0.59595 but is finding support above 0.59376. This back-and-forth price movement indicates that a big change could be coming soon. This struggle is happening alongside mixed news from the economy. The US CPI data from August 2025 was 3.4%, slightly higher than the expected 3.3%, putting pressure on the Federal Reserve to keep a firm stance. Meanwhile, last week’s Global Dairy Trade auction showed a small price increase of 1.2%, which offers only slight support for the kiwi dollar. For traders anticipating a breakout, a long strangle using October 2025 options might be a good choice. This involves buying a call option with a strike around 0.6000 and a put option with a strike near 0.5900 to profit from a sharp movement in either direction. If we think the deadlock will continue until the next central bank commentary, an iron condor could be a way to benefit from low volatility. This strategy means selling a call spread above the 0.5995 resistance and a put spread below the 0.5905 support. The aim is for the NZDUSD to stay between these levels until the options expire.

Past Period of Consolidation

We can recall a similar time of consolidation in the fourth quarter of 2023, right before the Federal Reserve indicated a policy change. That tight range trading led to a multi-week rally of over 8% in the NZDUSD pair. History shows that when such a dispute between buyers and sellers resolves, the resulting trend can be strong. For those who have a clear direction in mind, buying calls or puts is a straightforward way to act. If we expect the price to rise, purchasing the October 0.5975 calls offers a chance to benefit from a rise toward the 0.6000 level. Conversely, if we think support will break, buying the 0.5925 puts positions us for a decline toward the 0.5905 target. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now