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.
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