FxWirePro: EUR/NZD hovers around 5-DMA at 1.7214, bearish divergence raises scope for downside

• EUR/NZD retraces below 5-DMA after rejection at major trendline resistance at 1.7415.
   
• The pair is extending range trade for 2 consecutive day, intraday bias neutral.
   
• Technical indicators are inconclusive, RSI remains flat while we still see +ve DMI dominance.
   
• However, bearish divergence on RSI and Stochs raises scope for downside.
   
• We see scope for test of 20-DMA at 1.6977, further weakness only on break below.
   
• On the flipside, we see resumption of upside only on break above major trendline resistance currently at 1.7440.

Support levels - 1.6977 (20-DMA), 1.6730 (23.6% Fib retrace of 1.4534 to 1.7409 rally), 1.6711 (50-DMA)

Resistance levels - 1.7214 (5-DMA), 1.7409 (Nov 17 high), 1.7440 (rising trendline)

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -95.435 (Bearish), while Hourly NZD Spot Index was at 127.323 (Bullish) at 0640 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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