- EUR/NZD recovery fails to gather momentum, pair rejected at highs at 1.6758.
- The pair is extending weakness after breach at channel base support, scope for further downside.
- Technical analysis supports bearish bias in the pair. Resumption of weakness to see test of 38.2% Fib.
- Price has breached channel base support and momentum and trend indicators support weakness.
- We see -ve DMI dominance which adds to bearish bias and price has broken below cloud and major EMAs.
- We see scope for test of 38.2% Fib at 1.6355. On the flipside, 200-DMA at 1.6854 is major resistance and bearish invalidation only on break above.
Support levels - 1.6645 (Jan 24 low), 1.66, 1.6520 (Jan 11 low), 1.6355 (38.2% Fib)
Resistance levels - 1.6732 (5-DMA), 1.6785 (23.6% Fib), 1.68, 1.6854 (200-DMA)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-EUR-NZD-Trade-Idea-1335858) is progressing well.
Recommendation: Hold for targets.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -22.351 (Neutral), while Hourly NZD Spot Index was at 16.3045 (Neutral) at 1050 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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