NZD/USD: Holding above 0.6860 is crucial to see gains beyond 0.6980 – SocGen

NZD/USD defended projections at 0.6800 after which a phase of rebound is under way. Economists at Société Générale expect the kiwi to extend its up move beyond the 0.6980 mark towards the 200-day moving average (DMA) at 0.7110 and potentially 0.7180/0.7215.

See – NZD/USD: Hiking amid global uncertainties to dampen the kiwi – MUFG

Kiwi to extend its bounce while above 0.6860

“The kiwi has carved out a higher trough at 0.6860 recently. So long as this doesn’t get violated, the bounce is expected to persist.” 

“A move beyond 0.6980, the 38.2% retracement from September can take the pair towards a multi-month descending trend line near 0.7110 which is also the 200-DMA with next hurdle at September high of 0.7180/0.7215. This will be a crucial resistance.”