The NZD/USD upswing has come to a temporary halt just ahead of the pivotal 0.6448 high, which is expected to be broken allowing the kiwi to run toward net resistance at 0.6481, Credit Suisse’s economists brief.
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Key quotes
“NZD/USD has come to a temporary pause just ahead of the important March 9 spike high at 0.6448. Although further near-term consolidation is likely, in particular as the daily RSI momentum remains in heavily overbought territory, we look for an eventual break higher in due course.”
“We see resistance at the 78.6% retracement of the 2020 fall at 0.6481/88, ahead of a move back to the 50% retracement of the 2017/2020 fall at 0.6514, where we would expect to see fresh sellers at first. Above here could see momentum accelerate even further with resistance next at the 2014 downtrend at 0.6576, where we would expect to see another effort to cap.”
“Near-term support is seen at 0.6405, then 0.6366/63, ahead of the 200-day average at 0.6317, which ideally now holds.”
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