FxWirePro: EUR/NZD holds support at 20-DMA (1.6783), good to go short on break below

• EUR/NZD extends grind lower, hits fresh 2-week lows at 1.6783.
   
• The pair has taken support at 20-DMA (1.6783) and edged higher to currently trade at 1.6838 levels.
   
• We see weakness to accentuate on break below 20-DMA, scope then for test of 50-DMA at 1.6574.
   
• The pair is extending downside after rejection at major trendline resistance last week.
   
• Technical studies have turned bearish. RSI and stochs biased lower and MACD shows bearish crossover on signal line.
   
• Bearish divergence on RSI adds to scope for downside in the pair.
   
• Immediate resistance lies at 5-DMA at 1.6906. Break above could see test of trendline at 1.7280.

Support levels - 1.6784 (20-DMA), 1.6574 (50-DMA), 1.6353 (Oct 17 low)

Resistance levels - 1.6906 (5-DMA), 1.7060 (Oct 31 high), 1.7210 (Oct 26 high)

Recommendation: Good to go short on break below 20-DMA, SL: 1.6910, TP: 1.67/ 1.6585.

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 67.1011 (Neutral), while Hourly NZD Spot Index was at 91.0363 (Bullish) at 1030 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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