NZD/USD: Scope for a move to 0.6875/61 on a clear break below 0.6945 – Credit Suisse

NZD/USD maintains its break below the 200-day average at 0.7042. The kiwi is now oscillating around 0.6945 – below which would mark an important change of trend, economists at Credit Suisse report.

Resistance is s seen at 0.7035/42

“The break below the 200-day average at 0.7042 raises the prospect of a broader trend change, with the market now oscillating around its prior year-to-date lows at 0.6945. The ‘measured top objective’ projects a move beyond here towards 0.6913. Along with the break of the 200-day average, a weekly close below 0.6945 would mark a major medium term breakdown, opening up 0.6875/61 next and eventually beyond.” 

“Near term resistance moves to 0.7000/01. Thereafter, the market should now ideally remain capped below the 200-day average at 0.7035/42 to maintain the downward pressure. Next resistance is at 0.7103/15, which needs to hold to maintain the in-range top.”