EUR/NZD continues to push lower towards our next downside target seen at 1.6720. After a minor consolidation, more downside pressure towards 1.6620 remains expected. This could complete the decline from 1.7162 and set the stage for a new impulsive rally.
That said, we also need to consider the much more bearish alternate count, that calls for a continuation lower through support at 1.6620 for a decline towards 1.6200 before a corrective low is in place, but we will explore that possibility as we close in on support at 1.6620.
R3: 1.6910
R2: 1.6871
R1: 1.6820
Pivot: 1.6805
S1: 1.6778
S2: 1.6720
S3: 1.6685
Trading recommendation:
We are short EUR from 1.6900. We will move our stop lower to 1.6880.
