NZD/USD to resume the downtrend and retest major support at 0.6703/0.6697 – Credit Suisse

NZD/USD extends its aggressive rejection from its 55-day moving average (DMA) at 0.6848 and analysts at Credit Suisse continue to look for the core downtrend to resume. The kiwi is set to retest major support from the lows of 2021 and 38.2% retracement of the entire 2020/2021 bull trend at 0.6703/6697. 

Initial resistance is seen at 0.6752/60 

“With medium-term momentum still outright negative, we continue to look for the core downtrend to resume. Below near-term price support from the early January lows at 0.6752/33 should add weight to our view for a retest of major support from the lows of 2021 and 38.2% retracement of the entire 2020/2021 bull trend at 0.6703/6697.” 

“Whilst 0.6703/6697 should continue to be respected our bias remains firmly for an eventual clear and sustained break in due course to open up an eventual move to our core objective at 0.6511/6488.” 

“Resistance is seen at 0.6752/60 initially, with 0.6806/19 now ideally capping to keep the immediate risk lower. Above can see a recovery back to 0.6848/61, but with fresh sellers expected here again.”