FxWirePro: EUR/NZD spikes higher ahead of ECB minutes, extension of bullish momentum to see test of 20-DMA

EUR/NZD chart on Trading View used for analysis

• EUR/NZD spikes higher on the day as markets await ECB minutes later in the day.
   
• The pair is trading 0.73% higher a 1.6780 at the time of writing, bias higher.
   
• Price action has broken above 5-DMA and on the weekly charts, the pair has retraced dip below 110-EMA.
   
• We see a turn in 5-DMA which is now biased north and bullish divergence on Stochs adds to the bullish bias.
   
• Stochs and RSI are on verge of rollover from oversold levels and MACD is on verge of bullish crossover on signal line.
   
• The kiwi is sold-off across the board today. Focus now on ECB minutes.  
   
• If the minutes downplay the recent slowdown in the economy and Italy concerns and reaffirm commitment to end the QE program in December, we may see further upside.
   
• Scope then for test of 20-DMA at 1.6928. Bullish invalidation likely on retrace below 110W EMA at 1.6660.

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