- EUR/NZD rejected at session highs at 1.7342, finds support at 5-DMA at 1.7265.
- The pair is extending downside after failure to break major trendline resistance at 1.7520.
- Technical studies have turned bearish on daily charts. Stochs are on verge of a rollover from overbought levels.
- We see bearish divergence from price action on RSI and Stochs which adds to bearish bias.
- Break below 5-DMA finds next major support at 20-DMA at 1.7117 ahead of 50-DMA at 1.6843.
- On the flipside, breakout at 1.7520 raises scope for test of 1.7695 (78.6% Fib retrace of 1.85555 to 1.45348 fall).
Recommendation: Watch out for decisive break below 5-DMA to go short, target 1.72/ 1.7120/ 1.71.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -99.6757 (Bearish), while Hourly NZD Spot Index was at -137.559 (Bearish) at 1000 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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