The NZD/USD pair maintains its break above key short-term averages but remains capped in a range below the late-January highs at 0.7226/48 for now, the Credit Suisse analyst team informs.

Key quotes

“NZD/USD maintains its break above key short -term averages for now, although the pair still remains capped by the late January high at 0.7226. Only above here though would ease the immediate downside pressure and reduce the risk of the completion of a slightly larger top, instead suggesting the market is set for further sideways ranging below the mid-January high at 0.7240/48.” 

“A break above the mid-January high at 0.7240/48 would open the door to a fresh test of the key January highs at 0.7306/15.” 

“Support is seen initially at 0.7188/80, removal of which would again increase the risk of a larger top, with support seen thereafter at the crucial 0.7126/7084 support area, which contains the 55-day average and recent lows.” 

“Only a clear break below the crucial 0.7126/7084 support area would see the larger top completed to suggest further downside, which for now is not our base case.”