NZD/USD: Clear break below 0.6231/6196 to open up 0.5919/5841 – Credit Suisse
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NZD/USD has edged below key support at 0.6230/15. Although the breakdown is not convincing yet, analysts at Credit Suisse stay biased lower for a move to 0.5919.
Kiwi to suffer further downside
“We reiterate our tactically negative view, which is supported by the falling 55-day and 200-day moving averages, by daily MACD momentum crossing back lower from neutral territory, as well as by the strongly negative medium-term momentum. All this suggests a clear break below 0.6231/6196 is likely in due course, which would open up an eventual move to the next medium-term support at 0.5919/5841.”
“Near-term resistance moves to 0.6294, above which on the back of a close above 0.6231 would point to a concerning failure to break lower and likely trigger a recovery within the recent 0.6231/6196-0.6569/77 range.”
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