Credit Suisse discusses NZD/USD technical outlook and maintains a medium-term bullish bias.
"The correction in NZDUSD is testing its 21day exponential average at .6637 for a period of stabilization, but with large base in place, we look for a resumption of the bull trend in due course.
Resistance moves initially to .6680/88, then .6705, ahead of .6714. Removal of here would see a fresh challenge of the long-term downtrend from 2014 at .6732. A clear break above here would then expose the December 2019 high at .6756, removal of which would see a move back to the 78.6% retracement of the March/October 2019 fall, the July 2019 highs and the trend resistance from the “neckline” of the 2018 top at .6782/91, which we expect to be a tough barrier," CS notes.
"Support moves to .6637/20, which ideally holds to keep the immediate upside bias intact. Removal of here though would see support move to .6594/89," CS adds.