EURNZD is fighting this year’s lows. As expected in yesterday’s analysis, bears on EURNZD attacked support at 1.6550 placed around this year’s lows. It even managed to break this level a bit, but not for long. There was a rather strong growth candle, which moved the price from support by about 50 pips. What can we expect now?
Recall, for two weeks, the euro exchange rate against the New Zealand dollar is in the range between 1.6550 and 1.6800. Overcoming any of these levels can set a further direction for the price. In the event of a stronger upward reaction and breaking above local resistance at 1.6800, we can expect the rally up to 1,7100.
To find a target for further decreases, however, you need to look at the daily chart. For the last time, the EURNZD exchange rate was below 1.6550 last year. In September 2017 there was a dynamic rebound from the area of 1.6140. The price has reacted in these areas several times in previous years. In the case of opening a short position, here I would look for a goal for declines.