EUR/NZD flirts with a 4-month peak; bullish rally continues.
EUR/NZD is hovering above the 50.0% Fibonacci retracement level of the down leg from 1.7925 to 1.6885 around 1.7110 and is approaching the four-month high of 1.7150. The RSI is growing distance above the 50 level and is standing near the overbought zone, while the MACD is holding well above the zero level, increasing speculation for more upside pressure in the short-term.
In case the pair maintains its short-term direction to the upside after the bounce off the 18-month bottom of 1.6885, the bulls will probably challenge a new multi-month high around 1.7200. A break higher could last until the 61.8% Fibonacci of 1.7300.
On the flipside, a decline below the short-term ascending trend line could send the market until the 200-day simple moving average (SMA), which overlaps with the 1.6960 support level. A penetration of this key zone may drive the price towards the 38.2% Fibonacci of 1.6915.
Summarising, if the price surpasses the four-month high it could turn the focus for more bullish orders until the next resistance.
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