- EUR/NZD extends slump below 20-DMA, on track to test 50-DMA at 1.70.
- The pair is trading in a rising channel pattern and is extending downside after rejection at channel top.
- The pair has formed a 'Shooting Star' at highs and we see scope for further weakness. Bears now target 50-DMA at 1.70.
- Technical indicators are turning bearish and violation at 50-DMA will see further weakness.
- Stochs are showing a rollover from overbought levels and RSI has turned lower from near overbought levels.
- Break below 50-DMA will take the pair lower till next major support at 110-EMA at 1.6925 ahead of channel base at 1.6740.
- On the flipside, retrace above 5-DMA will see test of channel top at 1.7285. Break out at channel top negates bearish bias.
Support levels - 1.70 (50-DMA), 1.6925 (110-EMA), 1.6813 (Mar 13 low)
Resistance levels - 1.7164 (5-DMA), 1.72, 1.7285 (channel top)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-EUR-NZD-rejected-at-channel-top-with-Doji-formation-eyes-50-DMA-at-170-1317826) has hit TP1.
Recommendation: Book partial profits. Hold for further downside.
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