Last
week EUR/NZD surged higher and tested the significant resistance zone around
1.7130, with which bulls experience difficulties lately. Since then the pair
suffered a huge drop and today was seen hovering around the key support at
1.6840.
Within the next hours the New Zealand Statistics will release the latest growth
estimate with expectations of higher figures on GDP for the fourth quarter of
2017, but this optimism might play a low-down trick on the pair.
On the four hour time frame the price is developing below its flat 100-day and
200-day SMAs, acting as first resistance at 1.6900. The 20-day SMA has eased
its bearish slope and is currently located slightly above the current market
price.
RSI is hovering around 45 unable to find clear direction, while stochastic is
showing string bearish momentum and is going to cross to below its mid-line.
During the upcoming session it’s very important to see how the pair will behave
within the support zone at 1.6840 -1.6810. It’s a very significant area where
last week’s lows met the bullish trend line, starting from February 2017. In
case of breaking it to below, door are opened for testing 1.6720. On the upside
the pair remains capped by the 100-day and 200-day SMAs and if bulls succeed to
fight it and the to overcome next resistance at 1.7090, then we might be sure
that the uptrend would hold for a while yet.
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