NZD/USD: Spotlight is back at the pivotal 0.7111 retracement resistance – Credit Suisse

NZD/USD saw another strong reversal back higher from the 13-day exponential average, negating the recently completed bearish ‘reversal day’ to leave the market pressuring against the crucial 0.7111 resistance again.

Key quotes

“NZD/USD has reversed sharply higher to pressure back against the crucial 78.6% retracement of the 2017/2020 fall at 0.7111. We keep our bias for further consolidation at first, but stay alert for a clear break higher in due course and with a major base still in place, we stay biased higher over the medium-term and see resistance initially at 0.7121, ahead of the 50% retracement of the entire 2014/2020 fall at 0.7151/58, where we expect the market to take breather at first. A sustained move higher would reinforce the core bull trend and see resistance at 0.7200 initially.” 

“Suport moves to 0.7090, then 0.7070, ahead of 0.7013/00, which ideally now holds to keep the immediate upside bais intact. Beneath here though could see a move back to 0.6993 at first.”