NZD/USD: YTD high at 0.6891 expected to serve a cap at first – Credit Suisse

NZD/USD has pushed above some key resistance levels at 0.6718/32. Next key resistance is seen at 0.6873/91, which it is expected to cap, according to analysts at Credit Suisse.

Further consolidation is likely

“We shift our stance in favor of a lengthier consolidation phase, with resistance for further recovery seen at the December highs as well as the 50% retracement of the October 2021-January 2022 fall at 0.6855/6873, which we would look to try to cap at first.” 

“Were 0.6855/6873 to break, the YTD high at 0.6891 is expected to serve as a more solid barrier. Above here would signal a challenge of the falling 200-day moving average at 0.6949, however, this is not our base case for now.”

“On the flip side, a close below 0.6732/18 and a fall back below the recent lows at 0.6678 would relieve the recent upward pressure. Only below 0.6601/6589 would reassert the still intact medium-term downtrend though.”