- EUR/NZD rejected at channel top, slips lower for the 3rd straight session.
- The pair has formed a 'Shooting Star' at highs and we see scope for further weakness.
- Price action has fallen below 5-DMA and bears now target 50-DMA at 1.70.
- Technical indicators are turning bearish and violation at 50-DMA will see further weakness.
- Stochs are on verge of rollover from overbought levels and RSI has turned lower from near overbought levels.
- Break below 50-DMA will take the pair lower till next major support at 110-EMA at 1.6922 ahead of channel base at 1.6740.
- On the flipside, retrace above 5-DMA will see test of channel top at 1.7285. Break out at channel top negates bearish bias.
Support levels - 1.70 (50-DMA), 1.6922 (110-EMA), 1.6813 (Mar 13 low)
Resistance levels - 1.7176 (5-DMA), 1.72, 1.7285 (channel top)
Recommendation: Good to go short on rallies around 1.7120/30, SL: 1.72, TP: 1.7075/ 1.70/ 1.6925.
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