EUR/NZD: opportunities for sellers
EUR/NZD has been in a downtrend since the end of October. On the W1, the horizontal 50- and 100-week MAs have twice prevented the price from getting above 1.6975. On the D1, the 50- and the 100-day MA are in the negative order. In addition, the pair has breached the 2017-2019 support line at 1.6820. It’s now below the December consolidation range and will likely slide lower in line with the existing downtrend.
Currently EUR/NZD found some support around 1.6780 (78.6% of the July-October advance). The return to the 1.6825/60 area will likely provide selling opportunities. The outlook will remain bearish as long as the pair’s trading below 1.6975.
Notice that EUR/NZD tends to be quite volatile, especially during the thin holiday trading season.
Trade idea
SELL 1.6840; TP1 1.6690; TP2 1.6525; SL 1.6870
