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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.

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

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