NZD/USD has rebounded strongly from support at 0.6703/6697. As analysts at Credit Suisse note, 0.6835/38 needs to cap into the close to avoid a base and to keep the risks directly lower.
Broader risks still seen lower
“With medium-term momentum still negative and the market holding well below falling medium-term moving averages, we still identify the market as in a clear downtrend and expect the 0.6823/38 resistances to cap for an eventual break below 0.6703/6697, which would open up a move to our core objective at 0.6511/6467.”
“A closing break above 0.6823/38 would signal a potentially important low and trigger an intraday base, particularly as it is occurring on the back of another hold above 0.6703/6697, with next resistance at 0.6869/72, then 0.6895/6900.”
