NZD/USD to prove the key 2014 downtrend at 0.6567 – Credit Suisse

The kiwi is consolidating ahead of the 2014 downtrend at 0.6567, level which analysts at Credit Suisse expect to be tested while key support stays at 0.6448. UOB, though, sees prospects of further strength in NZD/USD losing some momentum.

Key quotes of Credit Suisse

“NZD/USD remains in a short-term consolidation phase just ahead of the pivotal 2014 downtrend, currently at 0.6567, in line with daily RSI momentum remaining in overbought territory.” 

“Although further consolidation should be allowed, we look for March 9 spike high at 0.6448 to ideally hold any additional downside and see a resumption of the upswing from there in due course.” 

“We see resistance initially at the aforementioned 0.6567, removal of which would reinforce the view that we are seeing a broader change in trend to the upside and see resistance next at 0.6580, ahead of 0.6665.” 

“Below 0.6448 on a closing basis would see a move back to the 200-day average and 23.6% retracement of the 2020 surge at 0.6321, which ideally floors the market.”