- EUR/NZD has broken below 100-DMA support at 1.6756, intraday bias lower.
- The pair is trading with a bearish bias, technical studies support further downside.
- Price action has dipped below daily Ichi cloud and 23.6% Fib retracement levels.
- Bearish divergence on RSI seen. Further, RSI is sharply lower and below 50 levels.
- Momentum studies are heavily bearish. We see -ve DMI dominance and ADX supports downside.
- Next major support lies at 38.2% Fib retracement of 1.4534 to 1.7480 rally at 1.6355. Break there targets 200-DMA at 1.6228.
- On the flipside, retrace above 100-DMA could see minor upside. Breakout above cloud negates bearish bias.
Support levels - 1.6355 (38.2% Fib retracement of 1.4534 to 1.7480 rally), 1.6228 (200-DMA), 1.6007 (50% Fib)
Resistance levels - 1.6761 (100-DMA), 1.6782 (5-DMA), 1.6861 (20-DMA)
Recommendation: Good to go short on rallies around 1.6650/60, SL: 1.6770, TP: 1.66/ 1.65/ 1.64/ 1.6355
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