NZD/USD ticks down to test the 200-DMA at 0.6883 – Credit Suisse

The NZD/USD pair maintains a “head and shoulders” top and analysts at Credit Suisse stay bearish for a test of the 200-day average at 0.6883. 

NZD/USD resistance moves to 0.7025/34 

“Although we do not exclude further short-term sideways trading, with a large ‘head and shoulders’ top in place as well as daily momentum still pointing lower, we look for a resumption of the downmove in due course.” 

“Below 0.6943 should open the door to a fall back to the 200-day average, currently at 0.6883, where we would expect to see a more concerted pause. However, the ‘measured top objective’ is seen set much lower at 0.6731.” 

“Resistance moves to 0.6988 initially, then 0.7025/34, which ideally caps to keep the immediate downside bias intact. Above here would expose 0.7041 next, ahead of the ‘neckline’ to the top at 0.7102, which ideally caps any potential reversal higher for now.”