On the hourly chart we can see that the upswing in EURNZD reached the resistance at 1.6550. This is quite an important level, because during the middle of November bears were struggling to breakthrough below. The further direction of the pair depends on the price behaviour in this area. So far, the baseline scenario is still bearish and the rebound from the resistance may be a signal to take a position.
Time for declines?
The exchange rate of the euro with the New Zealand dollar has already tried to break through below the support of 1.6330 three times this week, so far unsuccessfully. After another unsuccessful attempt there was a dynamic rebound and on Friday morning the price of the currency pair found itself in a very important area.
If there is a clear downward bounce from the 1.6550 resistance, it will be a great opportunity to play with the target of 1.6330 in the short term. There is about 200 pips to make. In case of overcoming the resistance, the bullish target will be the peaks of the second half of November, i.e. 1.6760. Here, too, you can earn about 200 pips.