NZD/USD to mark a major base above 0.6791 – Credit Suisse

NZD/USD strength has extended to medium-term resistance at 0.6756/91, but only above here would see a major base established with next resistance seen at 0.6828/37. On the flip side, support moves to 0.6729/19, per Credit Suisse.

Key quotes

“NZD/USD is testing a cluster of major resistances at 0.6756/91 – the July 2019 and January 2020 highs and the 61.8% retracement of the 2018/2020 bear trend. Whilst a fresh pullback from here should be allowed for, with our broader outlook for the USD negative we continue to see the risk for a clear break above here in due course.”

“Above 0.6791 the kiwi would see the completion of a significant medium-term base to mark a more sustained turn higher with resistance then seen next at 0.6828/37, then the 0.6939/70 highs of late 2018 and early 2019.” 

“Near-term support moves to 0.6748, with 0.6729/19 ideally holding to keep the immediate risk higher. A break can see a small top to warn of a retreat back to 0.6680/75 initially.”