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.
“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.”