NZD/USD stays capped for now by the ‘neckline’ to the 2015/2020 ‘triangle’ at 0.6216 and the 78.6% retracement of the February/March 2020 fall at 0.6239, as analysts at Credit Suisse note.
Read: NZD/USD faces a tough barrier around 0.6230 – UOB
Key quotes
“NZD/USD is seeing another push higher to break above the ‘neckline’ to the 2015/2020 ‘triangle’ at 0.6216, just ahead of the 78.6% retracement of the February/March 2020 fall at 0.6239. Although further consolidation should occur around this key medium-term inflection point, we look this zone to ideally continue to cap and are alert for a fresh top here, in line with daily RSI approaching overbought territory.”
“Above the key 0.6239 would see resistance next at 0.6265/68, just ahead of the 200-day average at 0.6317. Above here on a closing basis would remove our core bear view.”
“Support is seen initially seen at 0.6189, then 0.6170, ahead of 0.6094/81. Removal of here would turn the near-term risk back lower, with the next level at 0.6034, before the more important 0.5925/06, where we would expect to see a temporary floor.”
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