NZD/USD to retest June high at 0.6984 on a break of 0.6562 – Credit Suisse
|NZD/USD maintains its break above the pivotal 2014 downtrend at 0.6540 but has stalled at the 0.6584 high. On the flip side, near-term support moves to 0.6520/01, analysts at Credit Suisse apprise.
Key quotes
“NZD/USD was able to maintain its breakout from the crucial 2014 downtrend at 0.6540, although the market has moved into a near-term consolidation phase. While this phase should be allowed to extend further in the short-term, with a bullish ‘outside day’ still in place, a break above the long term downtrend confirmed and MACD momentum turning outright positive again, we remain biased to the upside and look for further strength in due course.”
“We see resistance initially at 0.6562, above which would suggest a renewed test of the June high at 0.6584. A clear break above here would reinforce thoughts of a broader change in trend to the upside, with 0.6665 the next resistance of note.”
“Support is initially seen at 0.6538/20, ahead of 0.6513/01, where we would expect to see a first attempt to hold. Beneath here though would mark an important failure at 0.6584 to see a move back to 0.6441/36, removal of which should see a fall back to 0.6385/77, where we would expect the market to find a floor.”
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