NZD/USD: Uptrend resumes with next resistance at 0.6655 – Credit Suisse

NZD/USD surged higher on Wednesday. The break above 0.6619 removes the Credit Suisse analyst team cautious outlook on the kiwi. The pair is consolidating above the 0.6630 level after seeing a daily high near 0.6650. Next resistance awaits at 0.6651/55.

Key quotes

“NZD/USD moved sharply higher yesterday, breaking above the short-term downtrend from the 2020 high at 0.6619 to remove our cautious outlook. Furthermore, MACD has now crossed back above zero and is close to crossing above MACDA, which if confirmed would suggest the broader uptrend may be directly resuming. The other key barometer to determine a direct resumption is the 0.6651/55 intraday highs, as a move above here would complete a small bull ‘flag’ continuation pattern to open up the 0.6704/16 highs and likely beyond.” 

“Near-term support moves to 0.6606, below which would quickly turn the risks lower within the range again, however only a move below 0.6503/89 would reassert the toping potential to open up a move to the 23.6% retracement of the 2020 rally at 0.6422 initially, then our ‘wedge measured objective’ at 0.6400/6377.”