- 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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