NZD/USD completed a clear bullish “pennant” pattern on Wednesday following the break above 0.7272 and the Reserve Bank of New Zealand meeting – which should reassert the core uptrend, with next resistance at 0.7353 and then 0.7465, as reported by the Credit Suisse analyst team.
See – NZD/USD: RBNZ to push against the perceived hawkishness if kiwi continues rising – Rabobank
Kiwi’s longer-term backdrop remains supportive
“We are now watching for a close above the more important May 10th and early March highs at 0.7306, as this should reinforce the new bullish pattern and reassert the broader uptrend, with the next resistance seen at the 78.6% retracement of the Q1 fall at 0.7353, where we would expect another temporary pause.”
“The ‘measured objective’ to the new bullish pattern suggests a move towards the 0.7465 high.”
“With a major base in place from last year, our longer-term bias stays higher, with our medium-term objective remaining at 0.7555/59, which is the 2017 high and the 61.8% retracement of the downmove from 2014.”
“The kiwi should now ideally hold above 0.7272/66 to maintain the new bullish pattern and certainly above 0.7251. Below here would leave the market back trapped in a range. Only below 0.7153/49 would hint at a more bearish setup.”
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