EUR/NZD: time for selling
By Dima Chernovolov
• EUR/NZD reverses from resistance zone
• Next sell targets - 1.5400 and 1.5670
EUR/NZD earlier reversed strongly from the resistance zone lying between the 50% and 61.8% Fibonacci Correction levels of the previous sharp intermediate impulse (1) from last September (as can be seen from the daily EUR/NZD chart below). This resistance zone was strengthened by the upper daily Bollinger Band, the resistance level 1.5670 (former strong support level which reversed the pair in November and in January) and by the 100-day simple moving average.
The pair is currently approaching the support level 1.5400 (which reversed the previous A-wave in January). If the price breaks below this support level, EUR/NZD can then be expected to fall further to the next support level 1.5300. If the pair reverses up from 1.5400 – it will most likely test the aforementioned resistance level 1.5670.