- EUR/NZD extends weakness after break below trendline support, bias still bearish.
- Euro slumped across the board overnight as ECB minutes and poor data weighed.
- The ECB minutes showed members remain widely concerned over the risk of trade conflicts and the absence of sustainability in the inflation.
- Further EZ Industrial Production rose less than expected in February. Export Price Index rose 0.3% MoM in March and Import Price Index came in flat.
- German inflation data released earlier today were in lin with expectations.
- The pair is trading 0.17% lower on the day and finds strong support at 200-DMA at 1.6661.
- Technical studies are bearish, but we see resumption of weakness only on decisive break below 200-DMA.
- Scope then for test of 38.2% Fib at 1.6355. Failure at 200-DMA could see retrace upto 100-DMA at 1.6929.
Call update: Our previous call (https://www.econotimes.com/FxWirePro-EUR-NZD-Trade-Idea-1235790) has hit TP2.
Recommendation: Book partial profits at lows. Watch out for break below 200-DMA for further weakness.
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