NZD/USD broke sustainably above the 0.6601 “neckline” to the “double top” to suggest a more immediate resumption of the core bull trend. Resistance moves initially to 0.6647, then more importantly at 0.6688/93. On the flip side, support is seen at 0.6571/70, per Credit Suisse.

See – NZD/USD to trade around 0.65 for the next few quarters – ANZ

Key quotes

“NZD/USD has seen the recent strength extend further, breaking clearly above the crucial ‘neckline’ to the ‘double top’ at 0.6601 and thus questioning the top itself. In addition, daily MSCD momentum seems to be about to turn higher again and hence we change our bias to a more direct resumption of the core bull trend.” 

“We see resistance initially at 0.6647, then 0.6688/93, removal of which could open the door for a move higher to the cluster of resistances at 0.6778/6806 – the recent and current year highs as well as the 78.6% retracement of the December 2018/March 2020 fall – where we would expect to see a more concerted effort to cap at first. Beyond here on a weekly close would then see a large ‘head & shoulders’ base complete, which would reinforce the broader medium-term bull trend.”

“Support moves initially to 0.6617, then 0.6604, ahead of 0.6571/70, beneath which would ease the immediate upside bias and see a move back to 0.6512.”