Loading...
by Charalambos Pissouros

EUR/NZD Slides After Hitting Resistance at 1.7315

EUR/NZD traded lower on Thursday, after it hit resistance near the 1.7315 territory, and now appears to be headed back down towards yesterday’s low of 1.7210. Overall, the rate is trading below the downside resistance line drawn from the high of October 16th. Thus, we believe that there is a decent chance for today’s decline to continue for a while more.

If the bears are willing to keep pushing lower and overcome the 1.7210 level, then we may see them targeting the 1.7150 zone again, marked by the low of November 14th and slightly above the low of the day before. If they have the appetite to break that area as well, then we may see them pushing towards the 1.7090 territory, marked by an intraday swing low formed on September 12th.

Taking a look at our short-term oscillators, we see that the RSI shifted back below 50 and is currently pointing down, while the MACD, although above its trigger line, lies within its negative territory and shows signs of turning down as well. These indicators suggest that this pair is picking up negative speed, which enhances our view for some further declines.

In order to start examining the bullish case, we would like to see a break above 1.7345. Such a move would also place the rate above the aforementioned downside line drawn from the high of October 16th and could encourage the bulls to climb towards the 1.7435 territory, defined as a resistance by the highs of November 8th and 12th. Another break, above that hurdle, could carry more bullish extensions, perhaps towards the 1.7515 area, which is near the highs of October 28th and 30th.

EURNZD 4-hour chart technical analysis

Disclaimer:

The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of retail investor accounts lose money when trading CFDs with the Company. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure.

Copyright 2019 JFD Group Ltd.

WEEKLY FINANCIAL NEWSLETTER
RIGHT INTO YOUR MAILBOX!
SUBSCRIBE TO JFD'S STRATEGIC REPORT