NZD/USD has broken short-term support at 0.6876/65, which suggests a corrective move lower. Nonetheless, support at 0.6782/78 is expected to hold, analysts at Credit Suisse report.

Only a sustained break above 0.7050 would confirm further medium-term upside

“NZD/USD has broken below the March lows at 0.6875/62. Below here is likely to lead to a test of 0.6842 next, then 0.6821, before the uptrend from the 2022 lows at 0.6795 and finally the 55-day average and 50% retracement of the recent upmove just below at 0.6782/78. Whilst above here the recent downmove will be viewed as corrective.” 

“Assuming we hold above 0.6782/78, near-term resistance thereafter moves to 0.6905/10, above which would open the door to challenge the YTD high at 0.7030/34.” 

“Only a sustained break above the mid-November high and the 2021 downtrend at 0.7050/54 would confirm further medium-term upside.”

“Below 0.6782/78 would open up 0.6728/22 next, below which would turn the risks back lower for a move to 0.6631 next.”