Credit Suisse discusses NZD/USD technical outlook and sees a scope for further downside in the near-term.
"NZDUSD fell sharply overnight, breaking beneath key support levels and completing a large “head and shoulders” top. With daily MACD momentum also moving lower, we look for further downside to unfold and a sharp acceleration lower, with scope for a move back to the late December low and 23.6% retracement of the 2020/2021 surge at .7003/6994, where we expect to see an initial attempt to hold.
Beyond here would see a fall back to the 200 -day average, currently at .6865, where we would expect to see a more concerted pause," CS notes.
"Resistance instead moves to .7099, then .7183/88, above which would question the top and expose .7269/73, ahead of .7307," CS adds.