NZD/USD: Upside momentum accelerates with key resistance seen at 0.6847 – Credit Suisse

NZD/USD continues to climb higher following the completion of a bull “triangle” continuation pattern and a very large “head and shoulders” base to suggest an acceleration of upside momentum. Next key resistance is seen initially at the downtrend from 2017 at 0.6847, removal of which would see further strength unfold, with resistance then seen at 0.6970, per Credit Suisse.

Key quotes

“NZD/USD surged higher yesterday following the completion of a bull ‘triangle’ continuation pattern, closing above the crucial cluster of medium-term resistances at 0.6792/6806 and coming to a pause at the 2017 downtrend at 0.6847. This marks a break of a major inflection point and the completion of a large ‘head and shoulders’ base, all of which suggests that we are seeing the resumption of the core bull trend.” 

“A close above 0.6847 would now see a further acceleration of the upside momentum with resistance then seen initially at at 0.6900, ahead of 0.6970.” 

“Support is seen at 0.6808/6796, which ideally holds to keep the immediate upside bias intact. Removal of here though would see a move back to 0.6753/46, ahead of 0.6710/6699.”