NZD/USD to fall below YTD lows at 0.6880 towards the 0.6700 level – Credit Suisse

NZD/USD stays trapped in its range between 0.7103/7115 and support at 0.6910/6880. However, analysts at Credit Suisse still believe a downside breakout is more likely.

Fresh sellers at the 55-DMA at 0.7051

“NZD/USD is now oscillating right in the middle of its range following the recent rejection from its falling 55-day average, now at 0.7051, with more important resistance still seen at the July high, 200-day average and 38.2% retracement of the Feb/July fall at 0.7103/15.”

“We stay biased towards a deeper move lower within the range, with support seen next at 0.6952/46, below which would open up the range bottom between 0.6910/6901 and the YTD low at 0.6880.” 

“Beneath the 0.6880 YTD low remains needed to confirm an important trend change lower, with next support then seen at a minor retracement level at 0.6861, then eventually 0.6703/00.”