NZD/USD: Scope for a slump to 0.6805 on a close below recent lows at 0.6981 – Credit Suisse

NZD/USD is breaking back below its 55-day average at 0.7011. A close below its recent lows at 0.6981 is set to turn the short-term risks lower within the broad range, analysts at Credit Suisse report.

Break above 0.7034/36 to relieve the recent downside pressure

“A close below the 50% retracement of the July/August upswing and the aforementioned price lows at 0.6988/81 would turn the short-term risks lower within the broader range, with next support seen at 0.6933/29, then 0.6878.”

“We would expect 0.6805 to define the bottom of the range, with our broader outlook staying neutral.”

“Near-term resistance moves to 0.7034/36, above which would relieve the recent downside pressure. Only a break above the aforementioned downtrend at 0.7114/16 would reassert conviction in a move higher.” 

“Next resistance above 0.7114/16 here is seen at the recent high at 0.7171, before the 61.8% retracement of the 2021 fall at .7211/15, with scope for an eventual move to 0.7317/24 if the downtrend is broken.”