EUR/NZD is extending gains after the rebound on the 1.6525 support area, heading towards the 200-simple moving average (SMA), which overlaps with the 1.6800 psychological level. The RSI is pointing marginally upwards, approaching the 50 level, while the stochastic is moving near the overbought area.

Should the price close comfortably above the 200-day SMA, immediate resistance would come from the 38.2% Fibonacci mark of the down-leg from 1.7925 to 1.6285 near 1.6915. If there is a jump above this level, it could open the way for a retest of the 40-SMA currently at 1.6945 before hitting the 1.7050 – 1.7065 key zone, which encapsulates the 23.6% Fibonacci of the up-leg from 1.6285 to 1.7305.

Alternatively, a bounce off the 1.6800 level could take prices lower until the immediate support of the 23.6% Fibo of 1.6675. More declines could come from the 1.6525 low and the 18-month bottom of 1.6285.

Concluding, EUR/NZD is lacking direction in the long-term as it failed to post a significant rally above 1.7305 or below 1.6285.


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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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