- EUR/NZD edges lower from fresh 2-year highs at 1.7480, bias still higher.
- The pair finds stiff resistance at 1.7520 (major trendline), break above to see further gains.
- Selling pressure around the NZD gathered steam in Asia after weak China Caixin PMI data supporting upside in the pair.
- China's Nov Caixin manufacturing PMI came in at 50.8 in November vs. 50.9 expected and 51.00 last.
- Technical studies support further upside in the pair, we see scope for test of 1.7695 (78.6% Fib retrace of 1.85555 to 1.45348 fall).
- On the flipside, 20-DMA is strong support, we see weakness only on break below.
Recommendation: Good to go long on break above 1.7520, SL: 1.73, TP: 1.76/ 1.7695
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 30.6535 (Neutral), while Hourly NZD Spot Index was at -67.1401 (Neutral) at 0700 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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