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The NZD/USD pair maintains a “head & shoulders” top and analysts at Credit Suisse stay bearish for a test of the 200-day average at 0.6878.

Key quotes

“Although further short-term sideways trading is likely, with a large ‘head and shoulders’ top in place and daily MACD momentum still pointing lower, we look for a resumption of the downmove in due course.”  

“Support is initially seen at 0.6995, then 0.6972, ahead of the current year low at 0.6943. Removal of here would open the door to a fall back to the 200-day average, currently at 0.6878, where we would expect to see a more concerted pause. However, the “measured top objective” is seen much lower at 0.6731.”  

“Resistance moves to 0.7034 initially, ahead of 0.7073 and then the ‘neckline’ to the top at 0.7102, which ideally caps any potential reversal higher for now. Only above 0.7183/88 would question the top and expose 0.7269/73, ahead of 0.7307. We would ideally look for a cap here, if reached.”