NZD/USD to test the June high at 0.6562 after a consolidation phase – Credit Suisse

The kiwi has been able to hold above 0.6418 and is entering a consolidation phase which should end with a test of the 0.6562 June high, according to economists at Credit Suisse.

Key quotes

“NZD/USD remains in a consolidation phase as expected after holding at the 13-day exponential average, currently at 0.6418. We look for the current rangebound environment to continue, which should eventually result in a fresh test of the pivotal 2014 downtrend and current June high at 0.6562/84.” 

“A sustained and closing break above June high at 0.6562/84 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 the 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 0.6430, then 0.6412, ahead of 0.6382, which ideally holds once more. A close below here would now see a small top complete, with 0.6322/21 the next support.”