FxWirePro: EUR/NZD on track to test 38.2% Fib at 1.6070, bias higher, stay long

• EUR/NZD grinds higher along 5-DMA support, we see weakness only on close below.
   
• Spot keep the bullish momentum unchanged for now despite unexpected drop in German industrial orders.
   
• Industrial output declined by 1.1 percent on the month in June after rising by 1.2 percent in May, data from the Economy Ministry showed.
   
• Focus now on RBNZ this week, analysts foresee a dovish guidance on the cards. RBNZ is expected to leave the OCR at 1.75%.
   
• RBNZ’s survey of inflation expectations showed 2-year inflation expectations decreased to 2.09%.
   
• 1-year-ahead inflation expectations decreased to 1.77% from 1.92%. The median also decreased to 1.80% from 2.00%.
   
• We see scope for test of 1.6418 (78.6% Fib retrace of 1.6930 to 1.4535 fall) on decisive break above 1.6070.
   
• Weakness likely on retrace below daily cloud. Drag till 100-DMA at 1.5614 then likely.

Support levels - 1.5923 (5-DMA), 1.5736 (20-DMA), 1.5614 (100-DMA)

Resistance levels - 1.6070 (38.2% Fib retrace of 1.85555 to 1.45348 fall), 1.61, 1.6236 (May 19 high)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-EUR-NZD-upside-pauses-at-618-Fibo-bias-higher-good-to-go-long-on-dips-835990) has hit TP1.

Recommendation: Bias higher, stay long.

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