NZD/USD to test 2018 June high at 0.7061 – Commerzbank

The NZD/USD pair is in 2-year highs after eroding the December 2018, January and March 2019 highs at 0.6939/70. The kiwi now looks at the 0.7061 2018 June high, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, briefs.

See:

• NZD/USD: Hints of RBNZ's remit change brake negative rates and propel the kiwi – Rabobank
• NZD/USD to rise as RBNZ is set to tighten policy monetary policy amid overheated housing market – MUFG

Key quotes

“NZD/USD is eroding the December 2018, January and March 2019 highs at 0.6939/70 as previously forecast. Above it the June 2018 high can be found at 0.7061 and the 78.6% retracement at .7111. This is regarded as the last defence for the .7436 2018 high.”

“Minor support below the 0.6810 November 13 low is seen at the 0.6799/90 September highs and more important support at the 0.6726/16 July and October highs.” 

“We will retain our bullish medium-term forecast while the cross remains above the 0.6588 current November low. Below it sits key support at the August low and September high at 0.6488/0.6799.”