NZD/USD: Key resistance at 0.6176/6204 is capping and will turn the kiwi lower – Credit Suisse

NZD/USD extended its up move above the downtrend from 2020 on Wednesday, before coming to a halt at the top of the range at 0.6156/80 for a mild rebound lower yesterday. Resistance at 0.6156/80 ideally caps and analysts at Credit Suisse look for a turn back lower.

Also see: New Zealand Retail Sales (Q1) -0.7% versus +0.7% prior

Key quotes

“Although the break above the 2020 downtrend is corning, we ideally look for 0.6156/80 to cap further and see an extension of the downside move to maintain the rangebound environment. With this in mind, support is seen initially at 0.6063, below which would turn the risks back lower within the range, with the next level at0 .6034, before the more important 0.5925/06, where we would expect to see a temporary floor.”

“Above the key 0.6156/80 highs would turn the spotlight back to the ‘neckline’ to the 2019/2020 ‘triangle’ at 0.6204/16, where we would be alert to a fresh top given its importance.”