- EUR/NZD upside was rejected shy of 20-DMA at 1.6455, intraday bias lower.
- The pair finds strong support at 1.6167 (trendline support), break below could see further weakness.
- Technical studies are biased lower, MACD supports trend lower.
- Break below 1.6167 to find next major support at daily cloud (1.60) ahead of 38.2% Fib at 1.5866.
- On the flipside, we see upside only on break above 20-DMA at 1.6456.
- We note bearish divergence on Stochs which raises scope for downside in the pair.
Support levels - 1.6301 (5-DMA), 1.6181 (23.6% Fib retracement of 1.4534 to 1.6690 rise), 1.6165 (trendline), 1.60 (cloud top)
Resistance levels - 1.6455 (20-DMA), 1.65, 1.6690 (Sept 7th highs)
Recommendation: Good to go short on close below 1.6165, SL: 1.63, TP: 1.60/ 1.59/ 1.5866/ 1.5740
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