- EUR/NZD has hit fresh 3-week lows at 1.6686 on Monday's trade, has pared some losses and is currently trading at 1.6780 levels.
- Recovery in the pair lacks traction, we see scope for further weakness.
- Technical studies are bearish and the pair faces stiff resistance at 1.6790/93 levels.
- Weekly charts also show bearish picture. Stochs are on verge of rollover from overbought levels and RSI has turned lower.
- We see scope for test of 50-DMA at 1.6589 and violation there could see further weakness.
Support levels - 1.6747 (23.6% Fib retrace of 1.5233 to 1.7215 rally), 1.6589 (50-DMA), 1.6375 (trendline)
Resistance levels - 1.6791 (5-DMA), 1.6793 (20-DMA), 1.6890 (Nov 9 high), 1.7060 (Oct 31 high), 1.7210 (Oct 26 high)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-EUR-NZD-holds-support-at-20-DMA-16783-good-to-go-short-on-break-below-988283) has hit TP1.
Recommendation: Book partial profits at lows. Bias lower, stay short for further downside.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -88.5627 (Bearish), while Hourly NZD Spot Index was at 19.7628 (Neutral) at 0630 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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