Currency Analyst since 2010

EUR/NZD: possible upward correction

Dima Chernovolov

• EUR/NZD reached sell targets 1.4800 and 1.4600

• Possible upward correction to 1.4800

EUR/NZD has been falling strongly in the last few trading sessions – first breaking the 1st sell target that was set in our earlier report for this pair - 1.4800 and then reaching the second sell target 1.4600, which was also set previously for EUR/NZD. The pair today reversed up from the support level 1.4600 (the support zone near 1.4600 was strengthened by the lower support trendline of the daily down channel from last September and by the lower daily Bollinger Band).

Given the strongly oversold reading on the daily Stochastic indicator, EUR/NZD might correct up to test the recently broke price level 1.4800 (standing close to the 38.2% Fibonacci Correction of the previous minor impulse (iii) – after which the pair is likely to reverse down toward the next sell target 1.4510.

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