NZD/USD is taking a short-term breather after its strong surge, with key resistance now seen at 0.7306/15, analysts at Credit Suisse inform.
Key quotes
“With the core uptrend still intact, a very large ‘head and shoulders’ base still in place and daily MACD momentum also breaking higher again, we aim higher despite the signs of overextension in other USD pairs.”
“We see resistance next at 0.7306/15, then 0.7343/45, ahead of a test of the April 2018 high at 0.7395, where we would expect to see fresh sellers at first. Removal of here would see the February and January 2018 highs exposed at 0.7434/38, where another breather is expected at first.”
“Support moves initially to 0.7258, then 0.7236, which ideally holds to keep the immediate upside bias intact. Beneath here would see 0.7200 next ahead of 0.7191/90, where we would expect to see another attempt to hold. Removal of here would suggest a move back to 0.7153/44.”
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