NZD/USD: A pause below 0.6296/6304 is likely to persist for now – Credit Suisse

NZD/USD’s gains late last week have been halted at the 200-Day Moving Average (DMA) at 0.6296. This barrier is likely to remain a cap for now in the near term, in the opinion of analysts at Credit Suisse.

Kiwi has rejected the 200 DMA at 0.6296

“NZD/USD has seen a tentative rejection of major resistance at the 200 DMA and the trendline from June at 0.6296/6304. With this rejection in place and daily RSI now again hovering close to overbought levels, we think another pause is likely to unfold. That said, should a break above .here be seen and a break below the 200 DMA in the DXY also take place, this would be seen to signal further medium-term strength, with next key resistance seen at the August highs at 0.6456/68.” 

“Near-term support is seen at 0.6162/58 and then at the 13-Day Exponential Moving Average at 0.6135, though only below the recent lows at 0.6062/60 would bring more near-term stability.”