NZD/USD to mark a major break lower below yearly lows at 0.6945/23 – Credit Suisse

NZD/USD is holding up slightly better than other USD pairs. However the 0.6945/43 2021 lows are now in focus, below which would mark a major breakdown to open up 0.6861 next, according to economists at Credit Suisse.

Resistance is seen at 0.7096/7120

“Our bearish view is reinforced by the large weekly momentum top, which raises the prospect of a broader trend change, with a move below the 2021 lows at 0.6945/23 needed to confirm this.”

“The ‘measured objective’ to the in-range top still projects a move to 0.6913, which suggests this breakdown will be seen, opening up 0.6875/61 next, with the next initial support then seen at 0.6810/00.” 

“Near-term resistance moves to 0.7052/57, then 0.7096/20, which is the ‘neckline’ to the previously highlighted short-term top, which we look to hold if reached. Above here the next level is seen at 0.7161/74, above which would negate the top.”