NZD/USD: Further consolidation is likely – Credit Suisse

NZD/USD has held above the potential uptrend from August at 0.6521 to reinforce the view of the Credit Suisse analyst team of further sideways trading. Resistance moves initially to 0.6601 while support is seen at 0.6568.

Key quotes

“NZD/USD corrective weakness has come to a halt for a rebound higher just ahead of the potential uptrend from August, currently at 0.6521. This reinforces the view that we could see further sideways trading before an eventual resumption of the core bull trend, with resistance seen initially at 0.6601, ahead of 0.6657/58, where we would expect to see a pause at first.” 

“Removal of 0.6657/58 would subsequently open the door to the cluster of resistances at 0.6778/6806 – the recent and current year highs as well as the 78.6% retracement of the December 2018/March 2020 fall – where we would expect to see a more concerted effort to cap at first.” 

“Support moves to 0.6568, then 0.6547/40, beneath which would see a move back to 0.6521/12. Removal of here would see a topping structure complete which would likely lead to much more aggressive corrective weakness.”