EUR/NZD has extended its decline and has tested 1.6384 as its lowest point. We currently see positive divergence between the 1.6384 low and the 1.6553 low. This indicate a loss of downside momentum, but to indicate a low is in place, we need a break above minor resistance at 1.6477 and more importantly a break above resistance at 1.6542 that calls for a rally back towards resistance near 1.6767.
As long as minor resistance at 1.6477 is able to cap the upside, we can not exclude more downside pressure, but the loss of downside momentum indicates a limited downside pressure at best.
R3: 1.6627
R2: 1.6542
R1: 1.6515
Pivot: 1.6477
S1: 1.6417
S2: 1.6384
S3: 1.6345
Trading recommendation:
WE bought EUR at 1.6480 and we will placed our stop at 1.6380.
