FxWirePro: EUR/NZD extends weakness post dovish ECB, on track to test 61.8% Fib

EUR/NZD chart on Trading View used for analysis

• EUR/NZD extends weakness post dovish ECB, recovery capped below 5-DMA at 1.6778, bias bearish.
   
• Euro bears largely in control post ECB. Focus now on German Ifo data for further impetus.
   
• The European Central Bank kept key rates and forward guidance unchanged.
   
• However, it downgraded assessment by stating that the balance of risks has moved to the downside. 
   
• If upcoming data continues to disappoint in the coming months, a change in policy guidance will become more likely.
   
• The pair is on track to test 61.8% Fib at 1.6662 ahead of 1.6557 (Nov 15 low). 
   
• 5-DMA is immediate resistance at 1.6779. Break above can see upside till 20-DMA.
   
• Bearish invalidation only above 200-DMA. 

Support levels - 1.6662 (61.8% Fib), 1.66, 1.6557 (Nov 15 low)

Resistance levels - 1.6779 (5-DMA), 1.6890 (20-DMA), 1.70 (23.6% Fib)

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.