NZD/USD: 0.5798/5813 to hold current correction to avoid a stronger upmove towards 0.5978 – Credit Suisse

NZD/USD is seeing a minor recovery, which economists at Credit Suisse look to be held at 0.5798/5813.

Move below 0.5510 needed to turn near-term risk back lower

“Whilst both daily RSI and MACD are holding bullish divergences, which suggests that the recovery will extend for now, our broader outlook remains outright bearish and we thus see this development only as a correction prior to an eventual move lower.”

“Immediate support is seen at 0.5649 and next at 0.5617, though a move below the recent price low at 0.5510 is needed to turn near-term risk back lower and prompt a move to a major support level at the 2020 low at 0.5468.” 

“Whilst we expect a better near-term ceiling to be found at the 0.5798/5813 level, above here would see scope to test the falling 55-day average at 0.5978.”

 

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