NZD/USD: Further consolidation below 0.7315 and above key support at 0.7153/44 – Credit Suisse

The NZD/USD pair has important support at 0.7153/44, which ideally holds to keep the market in a new high-level range, economists at Credit Suisse apprise.

Key quotes

“NZD/USD saw a deeper setback towards support at the 0.7153/44 lows yesterday, which have held as expected. We look for the market to continue to hold above here to maintain a high-level range, prior to the core bull trend eventually resuming, with the core uptrend still very much intact and a very large ‘head and shoulders’ base still in place.” 

“We see resistance initially at 0.7209, then 0.7281/86, ahead of a test of the April 2018 high at 0.7395, where we would expect to see fresh sellers at first to maintain the new range.”

“With daily MACD momentum breaking lower and a triple bearish divergence in place though, we do remain wary of a deeper setback. With this in mind, beneath 0.7153/44 would also would see a small top established to suggest a deeper correction lower, with support initially seen at 0.7094/84.”