NZD/USD: Recent strength seen only as a correction while below 0.6556/68 – Credit Suisse

NZD/USD continues its strong upward advance, threatening to reach the May high at 0.6556/68. However, while below here, economists at Credit Suisse stay bearish as this region ideally holds further near-term strength.

Only a sustained break above o.6556/68 would signal a false breakout

“We stay with our bearish medium-term view whilst below 0.6556/68, with only a sustained move above here threatening to negate the broader NZD/USD weakness.” 

“Immediate support is thus seen at 0.6417/15 and then further below at the price low at 0.6310/.6288, a break below which is needed to weaken correction and put the market on track to retest the YTD low at 0.6227/13.”

“A stable close above the May high at 0.6556/68 would indicate a false breakout and see scope for sustained upside, with next notable resistance then seen at the 55-day moving average at 0.6684/90.”