- EUR/NZD has been rejected at cloud base on Wednesday's trade.
- The pair edged lower from session highs at 1.5678 to close at 1.5573.
- Price action still holds above 20-DMA, we see weakness only on close below.
- Bullish bias intact, RSI above 50 levels, Stochs are biased higher and MACD is showing a bullish crossover on signal line.
- Break above cloud base will see upside resume, scope then for test of 1.6070 (38.2% Fib).
- On the flipside, break below 20-DMA will see drag upto trendline support at 1.5275.
Support levels - 1.5520 (20-DMA), 1.5493 (5-DMA), 1.5483 (23.6% Fib of 1.85555 to 1.45348 fall)
Resistance levels - 1.5666 (cloud base), 1.5930 (June 1 high), 1.6070 (38.2% Fib)
Recommendation: Good to go long on break above cloud base, SL: 1.5480, TP: 1.5810/ 1.5930/ 1.6070
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 76.087 (Slightly bullish), while Hourly NZD Spot Index was at -98.4417 (Bearish) at 0615 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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