Credit Suisse discusses NZD/USD technical outlook and highlights the importance of the 55-day average around 0.6630 for directional bias in the near-term.
"The correction lower is so far coming to a halt just ahead the 55 -day average at .6639/33 and with key price support just below at .6601, we ideally look for the zone to hold for further rangebound trading, in line with our bias for a lower AUDNZD. Thereafter, we see resistance initially at .6678, then .6693/96, above would ease the immediate downside pressure for a move back to the aforementioned .6783/98 area, which we expect to cap for now to maintain the range," CS notes.
"Below .6639/33 would see a move back to the aforementioned .6601/00, which is a key technical inflection point. Beyond here though would see a small “double top” complete to suggest significant further weakness," CS adds.