FxWirePro: EUR/NZD consolidates channel breach, bias lower, stay short

• EUR/NZD is consolidating breach at channel base support, scope for further downside.
   
• Euro bounced off from lows from remains vulnerable to Italy and European politics which are driving risk-off sentiment.
   
• Technical analysis supports bearish bias in the pair. Resumption of weakness to see test of 38.2% Fib.
   
• Price has breached channel base support and momentum and trend indicators support weakness.
   
• We see -ve DMI dominance which adds to bearish bias and price has broken below cloud and major EMAs.
   
• We see scope for test of 38.2% Fib at 1.6355. On the flipside, 200-DMA is major resistance and bearish invalidation only on break above.

Support levels - 1.6645 (Jan 24 low), 1.66, 1.6520 (Jan 11 low), 1.6355 (38.2% Fib)

Resistance levels - 1.6785 (converged 5-DMA & 23.6% Fib), 1.68, 1.6853 (200-DMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-EUR-NZD-Trade-Idea-1335858) is progressing well.

Recommendation: Hold for targets.

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