If the kiwi closes above 0.6448 would extend the consolidation phase further while a close below 0.6394 would see a small top completed triggering a correction, the Credit Suisse analyst team inform.
Key quotes
“A close back above 0.6448 today, after the unwinding of the oversold RSI momentum, would suggest an extension of the consolidation phase, which then might result in a fresh test of the pivotal 2014 downtrend and current June high at 0.6566/84. Removal of here would then reinforce the view that we are seeing a broader change in trend to the upside, with resistance seen thereafter at 0.6665.”
“A sustained close below the 13-day average at 0.6394 today would mark the completion of a small top, which would then trigger a short-term correction and see a move back to the 21-day exponential average, 200-day average and 23.6% retracement of the 2020 surge at 0.6321, which ideally holds.”
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