NZD/USD is the choice pair for anyone who wants to play for a USD rebound with the market now pressuring key short-term support at 0.6525/00. Whilst economists at Credit Suisse ideally look for this level to hold, the ‘wedge measured objective’ is at 0.6400. Bigger picture, weakness is still seen as corrective and the broader uptrend is expected to resume.
“As the market is now breaking beneath the 55-day average, we remain biased mildly to the downside in the short-term and would not exclude another test of the back of the broken 2014 downtrend, currently at 0.6500.”
“We ideally look for the 0.65 area to hold and shift into a lengthier consolidation phase, with resistance seen initially at 0.6554, then 0.6599/6000, ahead of a move to the back of the broken March uptrend at 0.6618.”
“Beneath 0.6500 could see weakness extend even further though, with next support seen at 0.6466, ahead of 0.6450/41. It is worth highlighting the ‘wedge measured objective’ is at 0.6400.”
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