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NZD/USD has retracted from the pivotal 2014 downtrend at 0.6553, which is proving to be a major resistance. Nonetheless, analysts at Credit Suisse expect the kiwi to clear this level towards the 0.6584 June high.

Key quotes

“Although we expect the range bound environment to extend further for now and the 0.6553 level to remain a tough barrier to break, we eventually look for a break above here. We would then look for a fresh test of the current June high at 0.6584, where the market may take another breather, with only a sustained and closing break above here reinforcing thoughts of a broader change in trend to the upside, with resistance then seen at 0.6665.”

“Support is initially seen at 0.6399/94, then 0.6382/77, which ideally continues to hold. In contrast, a sustained close below here would now see a small top complete, with 0.6325/21 the next key support level to monitor and where we would expect to see another attempt to hold.”