- EUR/NZD extends grind lower along downward sloping 20-DMA which caps upside.
- The pair finds strong support at 50-DMA at 1.6205, we see weakness on break below.
- Technical studies are bearish, MACD support trend lower, RSI weak below 50 levels.
- We see bearish divergence on Stochastics on daily charts which adds to downside bias.
- Break below 50-DMA finds next major support at 100-DMA at 1.5949.
- On the flipside, 20-DMA at 1.6423 is major resistance. Bearish invalidation on breakout above.
Support levels - 1.6205 (50-DMA), 1.6139 (Sept 21 low), 1.5995 (Aug 17 low), 1.5949 (100-DMA)
Resistance levels - 1.6313 (5-DMA), 1.6423 (20-DMA), 1.6232 (Sept 14 high)
Recommendation: Good to go short on break below 50-DMA (1.6205), SL: 1.6315, TP: 1.60/ 1.5950/ 1.5870
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -40.1027 (Neutral), while Hourly NZD Spot Index was at -22.4361 (Neutral) at 0515 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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