FxWirePro: EUR/NZD extends consolidation after breach at channel base, focus on EZ manufacturing PMI

• Euro opens June on a backfoot as manufacturing PMI is seen decelerating.
   
• Eurozone manufacturing activity report due later in the EU session is likely to confirm deceleration in May.
   
• EUR/NZD trades largely muted, recovers from session lows at 1.6658, retakes 1.67 handle.
   
• 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.
   
• The pair is extending consolidation after breach at channel base support, bearish technical indicators keep scope for further downside.
   
• Resumption of weakness to see test of 1.6520 (Jan 11 lows) ahead of 1.6355 (38.2% Fib).
   
• On the flipside, 200-DMA at 1.6856 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 - 1.6710 (5-DMA), 1.6785 (23.6% Fib), 1.68, 1.6856 (200-DMA)

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

Recommendation: Hold for targets. 

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest.