Since March, the EUR/NZD has been moving within the descending channel, clearly showing the bearish trend. But since November, there were at least two rejections off the middle trendline of the descending channel, potentially signaling the incoming upside correction. At the same time, the RSI oscillator formed a bullish divergence, yet again confirming a high probability of an upside move. Based on Fibonacci, applied to the last upside correction, it can be seen that 161.8% Fib support at 1.7090 has been acting as a strong supply/demand level, with multiple rejections off it. The most recent price action shows that it has acted as the support, which was rejected cleanly. Perhaps it is the beginning of a stronger move north, which might take place in the medium term.
Therefore, as long as the price remains above the recently produced lower low at 1.6940, EUR/NZD should be expected to rise. The key resistance could be located at 1.7660, which is almost 500 pips away from the current price. This level is confirmed by 61.8% retracement level and goes inline with the 200 Simple Moving Average. Also, it corresponds to the previously forme supply/demand area as well as the breakout point of the 50 EMA and 200 SMA.
Key support levels: 1.7090, 1.6940
Key resistance levels: 1.7350, 1.7660
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Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice.
Therefore, as long as the price remains above the recently produced lower low at 1.6940, EUR/NZD should be expected to rise. The key resistance could be located at 1.7660, which is almost 500 pips away from the current price. This level is confirmed by 61.8% retracement level and goes inline with the 200 Simple Moving Average. Also, it corresponds to the previously forme supply/demand area as well as the breakout point of the 50 EMA and 200 SMA.
Key support levels: 1.7090, 1.6940
Key resistance levels: 1.7350, 1.7660
Thanks for your support! If you liked this analysis, please support our profile with a 👍 and follow us to get a new daily analysis.
Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice.