NZD/USD: Scope for a race higher to 0.7317/24 – Credit Suisse

NZD/USD has rebounded from 0.7090/69. However, a close above the key downtrend resistance at 0.7139 is needed to reinforce the bullish view of analysts at Credit Suisse.

NZD/USD is holding above the “neckline” to the large base at 0.7090/69 

“The kiwi is still holding above the 0.7090/69 ‘neckline’ and breakout point to the large recently completed base and we stay biased higher. Our bullish view is based on this large base and the still bullish short-term momentum setup.” 

“Next resistance above the downtrend resistance from the 2021 highs at 0.7139 is seen at the 61.8% retracement of the 2021 fall at 0.7211/15, with scope for an eventual move to 0.7317/24. The breakout in the NZD TWI suggests we could move even beyond here.” 

“Support stays at 0.7090/69, where we recently turned tactically bullish. The next level below here is seen at 0.7035, then 0.7002/86, below which would negate the base and instead suggest further choppy sideways ranging.”