NZD/USD: Recovery to fade at the 0.7090 resistance – Credit Suisse

NZD/USD has surged higher over the past few sessions, which reasserts the prior range for now. Nevertheless, economists at Credit Suisse do not expect the upmove to directly extend and would instead fade the move.

See – NZD/USD: End-of-month flows to jitter the kiwi – ANZ

Important medium-term resistance starts at 0.7090 

“We do not expect a direct continuation of the recent upmove and would instead fade an approach towards the top of the prior range. With this in mind, the first resistance is seen at 0.7090, the more important 0.7106/16, which includes the 200-DMA, where we would expect a firm ceiling if reached.”

“Support moves to 0.6988/86 initially, then 0.6934/29. Below this latter level is now seen as the trigger to a retest of 0.6805/0.6799.”

“A break below the 0.6805/0.6799 area would reassert the downtrend again, with support seen next at our 0.6703/00 Q3 objective – the 38.2% retracement of the entire 2020/2021 uptrend.”