NZD/USD: Break of key resistance at 0.6563 to reinforce view of upside trend – Credit Suisse

The kiwi maintains a consolidation range after closing above 0.6488 and is now trading at 0.6466 with a test of the 0.6563 June high on the cards. Above here, the trend would change to the upside, the Credit Suisse analyst team apprise.

Key quotes

“NZD/USD reverted back higher to close above the pivotal 0.6398 and 0.6448. This adds weight to the view of an extension of the rangebound environment, which may eventually result in a fresh test of the pivotal 2014 downtrend and current June high at 0.6563/84.” 

“A sustained and closing break above the June high at 0.6563/84 would reinforce thoughts of a broader change in trend to the upside, with resistance then seen at 0.6629, ahead of 0.6665, where we might see fresh sellers at first. Removal of here in due course would the expose the 31st December 2019 high, then 38.2% retracement of the 2014/2020 fall and the 61.8% retracement of the 2017/2020 fall at 0.6755/60.”

“Short-term support moves initially to 0.6459, then 0.6426/17, ahead of 0.6381, which ideally holds once more. A close below here would now see a small top complete, with 0.6322/21 next.”