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Technical Analysis – EUR/NZD extends bullish actions

EUR/NZD 08/04/19 | EconAlerts

EUR/NZD extends bullish actions despite overstretched stochastic.

EUR/NZD reached overbought levels according to the stochastic oscillator as the price hovers above the 23.6% Fibonacci retracement level of the downward movement from 1.7925 to 1.6885, around 1.6675, recording a fresh one-month high, today.

While the aforementioned technical indicator continues to stand above 80, mirroring the market’s bullish behavior over the past couple days, it is also flagging that a recovery could reemerge in the short term. The RSI is also holding above its 50 level, which supports the positive view as well, while the 20-day simple moving average keeps approaching the 40-day SMA for a bullish cross.

In case the pair maintains its medium-term direction to the upside, the bulls will probably challenge the previous top at 1.6725. A break higher could last until 1.6850 ahead of the 38.2% Fibonacci mark of 1.6915.

Alternatively, declines may drive the price towards the 20- and 40-SMAs near 1.6530 before the 1.6420 support comes into view. Beneath the latter, the 18-month low of 1.6885 which rejected the market’s bearish action recently could be another level in focus.

Concluding, in the short-term, if the price surpasses 1.6725 and have a daily close above this level, it could open the door for more bullish orders until the next resistance.


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Disclaimer:
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.


Source: XM

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