NZD/USD remains in a clear uptrend with next resistance at 0.7060 – Credit Suisse

NZD/USD remains in a clear uptrend, supported by a bullish continuation pattern and a major base, with next resistance seen at 0.7054/60, economists at Credit Suisse apprise.

See: NZD/USD to stay strong amid more Fed action – ANZ

Key quotes

“Although daily RSI is still in heavily overbought territory and momentum might slow down, allowing the market to unwind its overbought condition, with a major base in place though, as well as the recently completed bull ‘triangle’, we stay biased higher with resistance initially at the June 2018 high at 0.7054/60.

“Removal of the 0.7060 June 2018 high would subsequently open the door to the 78.6% retracement of the 2017/2020 fall at 0.7111, where we would expect to see a first attempt to cap.” 

“Support is initially seen at 0.7000, then 0.6993, ahead of 0.6924/18, with this zone now ideally holding on any pullbacks to keep the risks directly higher. Below here would instead trigger a correction back to the 0.6879/76, where we would expect another attempt to hold.”