NZD/USD has recovered strongly from yesterday’s intraday setback, breaking above the key 0.6756 December high to test the pivotal resistance zone at the July 2019/January 2020 highs, 200-week average and cluster of long-term Fibonacci retracement levels at 0.6789/91. Above 0.6789/91, the kiwi would see next resistance at 0.6800/06 and then 0.6836/67. On the flip side, support moves to 0.6759, per Credit Suisse.
Key quotes
“NZD/USD has recovered strongly from yesterday’s setback, breaking above the key 0.6756 December high and prodding also above the pivotal the July 2019 and January 2020 highs at 0.6789/91. Although we might not see a closing break here at the first attempt, our bias remains for a break higher in due course, which would complete a medium-term base to significantly reinforce our broader bullish outlook, with short-term resistance then seen subsequently at 0.6800/06 – a psychological barrier and 78.6% retracement of the December/March fall – where we would expect to see another initial attempt to hold. Beyond here would see trend resistance at 0.6836/37 next and higher over the medium term.”
“Support for a near-term fallback moves initially to 0.6777, then 0.6759, which ideally holds to keep the upside bias intact. Beneath here though would see 0.6711 and then the 21 -day exponential average at 0.6688 next.”
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