NZD/USD to drop towards 0.7006 before resuming the uptrend – Credit Suisse

The NZD/USD pair is at risk of a short-term correction as the kiwi paused over the past week. However, the broader uptrend remains clearly intact, the Credit Suisse analyst team informs.

Key quotes

“NZD/USD is threatening a small top, which would be confirmed below 0.7153/44, which would suggest a setback early in the quarter towards 0.7006/6999. However, the core uptrend remains clearly intact and we look for an eventual continuation higher post this correction.” 

“An eventual break above 0.7315 would open the door to the 2017 and 2018 highs as well as the 61.8% retracement of the entire 2014/2020 fall at 0.7438/7558, most likely beyond the first quarter.”

“A closing break below 0.7006/00 would instead complete a larger top and suggest a much deeper and more protracted correction, which is not our base case.”