Ella 
While we expected further gains for NZD/USD yesterday, we said “a clear break above 0.5995 is unlikely given overbought conditions. However, NZD/USD fell sharply off its highs to close at 0.5956 (- 0.28%). Upward pressure has subsided and NZD/USD is unlikely to rise further. Today, NZD/USD is more likely to trade sideways between 0.5925 and 0.5985.
Outlook for the Next 1-3 Weeks: Our update from yesterday (August 30, when the price was 0.5960) still stands. As we have highlighted, momentum is beginning to build. If NZD/USD breaks and holds above 0.5995, a move to 0.6035 is likely. Note that while NZD/USD broke above 0.5995 in New York trading, it has pulled back sharply from its highs. Overall, only a move above 0.5900 (unchanged “strong support” level) would signal that upside risks have dissipated.
