Hello traders! Throughout this week, EUR/NZD twice rejected the 200 Simple Moving Average as well as the average-price downtrend trendline. This goes to show strong bearish domination which should result in a further price decline.
Currently, price is right in the precious area of support, which now is the resistance. Therefore, today EUR/NZD might get very attractive for sellers, thus the downside move could begin any time.
There are 3 downside target levels to watch, all of which are based on the Fibonacci retracement level applied to the last downside wave where EUR/NZD bottomed out. The nearest support is at 1.7583, which is 100% Fibs corresponding to the breakout point of the uptrend trendline. Then we have 88.6% Fibs at 1.7535 and finally the 78.6% Fibs at 1.7500, which is strong psychological support.
All-in-all, as long as daily closing prices remain below the recently printed high at 1.7835, the trend will remain bearish. But, daily break and close above, will certainly add buying pressure and might result in the uptrend throughout the next week.
Bias: Strongly bearish while daily closing prices below 1.7835
Potential Resistance Zone: 1.7750 – 1.7800
Potential Targets: 1.7583, 1.7535, 1.7500
Have a profitable trading!