NZD/USD: Weakness is viewed as corrective whilst above 0.6782/80 – Credit Suisse

NZD/USD has broken short-term support at 0.6876/65, which suggests a corrective move lower. However support at 0.6782/80 is expected to hold, analysts at Credit Suisse report.

NZD/USD extends the decline

“Whilst the falling daily MACD hints toward the deteriorating near-term picture, we continue to view the current weakness as corrective only within the context of the upmove from the 2022 low.”

Only a break below 0.6782/80 would challenge this premise and warn of a deeper setback to 0.6728/22 and then potentially to 0.6631.” 

“Resistance moves to 0.6854/64, next to 0.6892/6910 and then to 0.6947. Above here would see scope to challenge the YTD high at 0.7030/34, though only a stable move above the mid-November high and the 2021 downtrend at 0.7050/53 would signal further medium-term strength.”