EUR/NZD on a slippery slope; bears take charge in the near term.
EUR/NZD has come close to breaking the 40-day simple moving average (SMA) today, moving towards the 1.6690 support level again. The MACD oscillator is consolidating below the zero and trigger lines keeping its momentum flat, while the %K line of the stochastic oscillator recorded a bearish crossover with the %D line, approaching the negative zone.
The next level for traders to have in mind is the 1.6690 support, before slipping towards the 38.2% Fibonacci retracement level of the upward movement from 1.4535 to 1.7925, around 1.6630. Lower still, the bears may aim for the 14-month trough of 1.6330, reached on December 5.
On the other side, a bounce off the 40-day SMA could drive prices higher towards the 20-day SMA currently at the 1.6900 level. Slightly above this line could send prices until 1.6940. Further upside pressure may meet again the 23.6% Fibonacci of 1.7125.
To sum up, the market is expected to hold neutral in very short-term and bearish in the medium-term. A significant decline below December’s low could endorse the negative outlook in long term as well.
All trading involves risk. It is possible to lose all your capital.
This information is not considered as investment advice or investment recommendation but instead a marketing communication. This material has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.