NZD/USD to test the December 2018 high at 0.6970 – Credit Suisse

NZD/USD continues to grind higher, prodding above the 0.6942/45 highs to test the even more important December 2018 high at 0.6970, analysts at Credit Suisse apprise.

Key quotes

“Although we might see another reversal back lower, with a major base in place, as well as the recently completed bull ‘triangle’, we stay biased higher medium-term and look for an eventual clear close above the key 2019 and recent range highs at 0.6942/45.” 

“Beyond 0.6945 would see the December 2018 high at 0.6970 just above. Removal of here in due course should subsequently see an acceleration of upside momentum, up to the June 2018 high at 0.7054/60 and eventually 0.7111/58.” 

“First support is seen at 0.6913/05, then 0.6879/62, below which would trigger a correction back to the ‘neckline’ to the large base at 0.6811/6796. Whilst not our base case, removal of 0.6811/6796 would suggest an even deeper correction lower and see a move back to 0.6753/46, ahead of 0.6679/72, which ideally then holds if reached.”