EUR/NZD short-term bullish picture reinforced, bulls plot a 1-year high.
EUR/NZD buyers are logging a new high, as they push past the peaks of 1.7590 and 1.7614 from August 26 and September 20 respectively. The rally off the 1.7358 level is also backed by the turn-up and bullish crossover by the 40-period SMA with the 100-period one, which came after nearly a one-month convergence period.
The short-term oscillators agree with the improving picture, as the MACD rises above its red trigger line in the bullish area and the RSI inclines into the overbought territory.
If the buyers manage to sustain the climb, the 1.7720 resistance coming from the inside swing from October of last year, could apply some downside pressure. Extending further, the October 2018 swing peaks could step up to the plate, with 1.7805 first, followed by the 1.7880 level.
To the downside – if the sellers retake control and reverse the pair back below the previous eleven-month peak of 1.7614 and nearby 1.7590 support the swing low at 1.7448 could challenge the bears, as the 40- and 100-period SMAs reside marginally beneath it. Penetrating below, the 200-period SMA presently at 1.7390 could interrupt the drop before focus turns to the support region of 1.7358 to 1.7300 for further declines.
Summarising, for the short- and medium-term bullish bias to endure, the price would need to remain above 1.7614. However, below 1.7590, things would adopt a neutral status, while a drop below 1.7300 may turn the bias neutral-to-bearish.
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