EUR/NZD recovers from a 2-month low after hitting lower Bollinger Band.
EUR/NZD has declined considerably over the previous three days, recording a new two-month low around 1.6408 and touching the lower Bollinger Band. Currently, the price is paring some of the losses, approaching the 1.6500 level. Technical indicators in the daily timeframe are reverting back to the upside. The stochastic oscillator is turning higher in the oversold zone, signaling bullish pressure, while the RSI indicator is pointing up in the bearish area.
In the event of an upside reversal, the 23.6% Fibonacci retracement level of the down leg from 1.7925 to 1.6330, near 1.6700 could act as a barrier in case the price jumps above 1.6515. A break above this level would take the pair above the 40-day simple moving average towards the 1.6850 resistance.
Further losses should see the December 14-month low of 1.6330 acting as m
In the medium-term picture, EUR/NZD is trying to extend its bearish view, posting a negative tendency. A new lower low below 1.6330 would confirm this structure.
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