NZD/USD to plunge towards the 0.6511/6488 zone on a break below 0.6703/6697 – Credit Suisse

NZD/USD is expected to see a clear break of 0.6703/6697 to mark a resumption of the downtrend for a move the lows from August and September 2020 at 0.6511/6488, analysts at Credit Suisse report.

NZD/USD to resume the core downtrend on a clear break of major support at 0.6703/0.6697

“With a major top already in place we continue to look for an eventual clear and sustained break below the lows of 2021 and 38.2% retracement of the entire 2020/2021 bull trend at 0.6703/6697 to mark the completion of a fresh bearish continuation pattern to confirm a resumption of the core downtrend. We would then see support next at the down trendline from March 2021 at 0.6662/60.” 

“Whilst we would look for 0.6662/60 to hold at first, an eventual break should see weakness extend to 0.6588 ahead of our core objective at the lows from August and September 2020 at 0.6511/6488.” 

“Resistance is seen at 0.6737/50 initially, then 0.6752/60, with 0.6806/19 ideally capping to keep the immediate risk lower. Above can see a recovery back to 0.6839/61, but with fresh sellers expected here again.”