- EUR/NZD extends grind lower after break below 100-DMA at 1.6768, bias lower.
- Upside in the pair remains capped below 5-DMA at 1.6663, retrace above could see minor upside.
- Price action has slipped below daily cloud, technical studies support further downside.
- Bearish divergence on RSI seen. Further, RSI is sharply lower and below 50 levels.
- Momentum studies are heavily bearish. We see -ve DMI dominance and ADX supports downside.
- Next major support lies at 38.2% Fib retracement of 1.4534 to 1.7480 rally at 1.6355. Break there targets 200-DMA at 1.6234.
- On the flipside, retrace above 100-DMA could see some reversal. Breakout above cloud negates bearish bias.
Support levels - 1.6355 (38.2% Fib retracement of 1.4534 to 1.7480 rally), 1.6241 (200-DMA), 1.6007 (50% Fib)
Resistance levels - 1.6664 (5-DMA), 1.6768 (100-DMA), 1.6783 (20W-SMA)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-EUR-NZD-breaks-100-DMA-support-at-16756-good-to-short-rallies-1087540) has hit TP1.
Recommendation: Bias lower, stay short.
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