NZD/USD fell sharply to the bottom of its range on Friday, but held above key support at 0.7115 exactly. Only a break below here would confirm a top, according to the Credit Suisse analyst team.
Break below 0.7115 to complete an in -range top
“NZD/USD fell sharply on Friday, moving right to the bottom of its range to test key support at 0.7115, below which would complete an in-range top and confirm a move lower within the broader 2021 range.”
“With daily MACD now crossing below zero, next key support is seen at the 200-day average at .7033, which could prove a tough barrier at first. Nevertheless, the potential “measured top objective” suggests we could dip below here if the pattern is confirmed, with next support then seen at some corrective price lows at .7003/6996.”
“Near-term resistance stays at 0.7244/50. Above here would complete an intraday base and turn the risks higher, with the next resistance at 0.7289, then 0.7306/17.”
“Above the 0.7306/17 level and then the important retracement resistance at 0.7353 would resolve the range higher and reassert the core bull uptrend for a move to the 2021 high at 0.7465.”