FxWirePro: EUR/NZD resumes downside after trendline break, eyes 200-DMA at 1.6656

• EUR/NZD has resumed downside after break below major trendline support at 1.6845.
   
• kiwi supported after speech from RBNZ's Assistant Governor, John McDermott.
   
• McDermott said the expanded mandate which now includes employment stability will help the RBNZ to achieve price stability moving forward.
   
• Price action has dipped below 23.6% Fib and bears now eye 200-DMA at 1.6656.
   
• Technical studies are biased lower. RSI below 50 and biased south. Momentum studies are highly bearish.
   
• Violation at 200-DMA will see further weakness. Scope then for test of 38.2% Fib at 1.6355.
   
• On the flipside, 100-DMA at 1.6934 is major resistance, we see bearish invalidation only on break above.

Support levels - 1.67, 1.6656 (200-DMA), 1.66, 1.6520 (Jan 11 low)

Resistance levels - 1.6811 (5-DMA), 1.6845 (trendline support turned resistance), 1.6934 (100-DMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-EUR-NZD-Trade-Idea-1235790) is approaching TP2.

Recommendation: Bias lower, stay short for further downside.

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