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The kiwi reverted back higher overnight and now analysts at Credit Suisse look for a fresh test of the pivotal 2014 downtrend at 0.6569.

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Key quotes

“Yesterday’s weakness in NZD/USD has reverted quickly and we are seeing another test of the important 2014 downtrend, currently at 0.6569. Although further consolidation should be allowed for here, in particular as daily RSI is still in heavily overbought territory, we look for an eventual break higher in due course, which would reinforce the view that we are seeing a broader change in trend to the upside and see resistance next at 0.6580, ahead of 0.6665.” 

“Above 0.6665 would find resistance next at 0.6705, ahead of the more important current year high, 61.8% retracement of the 2017/2020 fall and 38.2% retracement of the 2014/2020 fall at 0.6755/60, where we would expect to see a more concerted effort to cap.” 

“Support is initially seen at 0.6495, ahead of 0.6456/48, which now ideally holds. Beneath here would see a move back to 0.6319, where we would expect the market to ideally look for a floor.”

 

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