Amidst thin trading conditions overnight NZDUSD held in a fairly tight range. A lack of volume overnight and market moving data in Asia yesterday kept the pair glued around its 50% retracement level (drawn from April’s high and June’s low). In today’s session we are also expecting fairly thin trading conditions, which may combine with another light data day to keep this pair in its current range.

However, in the event of a break there may be some short-term opportunities to the upside or downside, depending on the direction of the break. In saying this, we don’t expect any major support/ resistance levels to broken at the moment. Yet, when volume returns some opportunities may present themselves (assuming the pair remains in its current trading range during thin conditions): a possible push towards 0.8005 if price action breaks to the downside. We favour a push lower with move vol in the market as thin conditions can skew some technical indicators. Keep in mind, there are some indications we may get a push higher in the near-term if this scenario takes too long to play out.

Source: FOREX.com