NZD/USD set to break above 0.6925 towards 0.6993/96, then 0.7080/93 – Credit Suisse

NZD/USD is likely to see further strength. Although the kiwi remains below the 200-day moving average (DMA) at 0.6924/25, economists at Credit Suisse now expect a break higher.

Kiwi the recovery will continue

“We shift our bias to tactically positive and anticipate that NZD/USD will eventually break the 0.6924/26 level. Above here, resistance is seen at the 50% retracement of the 2021/22 down move at 0.6993/96 and further above at 0.7080/93, with a break above this level starting to raise a prospect of a newly emerging medium -term uptrend.”

“A fall back below the 55-DMA at 0.6742/36 would turn the risk back lower again, but would now be seen only as a corrective setback within the upward trending short-term range.”

“A fall back to 0.6601/6589 would warn of a potentially broader range, which we would expect to be held at the YTD low at 0.6529 at the very latest.”