NZD/USD breaks pivotal 2014 downtrend at 0.6542 in search of the 0.6584 June high – Credit Suisse

NZD/USD broke above the pivotal 2014 downtrend at 0.6542 in early trading today as jumped to four-week tops, around the 0.6565 region. The next pivotal resistance is now seen at the June high at 0.6584, analysts at Credit Suisse apprise.

Key quotes

“Removal of 0.6542 on a sustained and closing basis today would further underpin the upswing and suggest that we can expect a renewed test of the June high at 0.6584, where the market may take another breather.” 

“Only a clear break above the 0.6584 June high would emphasize thoughts of a broader change in trend to the upside, with 0.6665 the next resistance of note.”

“Support is initially seen at 0.6545/42, then 0.6534, ahead of 0.6508/01, where we would expect to see a first attempt to hold. Beneath here though would see a move back to 0.6441/36, removal of which in contrast could see a fall back to 0.6385/77, where we would then expect the market to find a floor.”