FxWirePro- Currency Strength Index (4- Hour chart)- Currency pairs to watch (USCAD and EURJPY) for the day)
FxWirePro:EUR/NZD neutral in the near term scope for downward resumption
• EUR/NZD erased earlier gains on Thursday as Japan's intervention triggered retreat in the pair .
• The Bank of Japan (BoJ) intervened in the FX market to stem the massive weakening of the yen triggered a EUR/NZD decline.
• EUR/NZD rallied as high as 1.6909 after the intervention, but the gains started eroding in early U.S. trade.
• Technicals warn longs that correction is possible as a bear engulfing candle has formed on Daily chart.
• Immediate resistance is located at 1.6919 (23.6%fib), any close above will push the pair towards 1.6950 ( Higher BB)
• Support is seen at 1.6744(38.2%fib) and break below could take the pair towards 1.6648 (14DMA).
Recommendation: Good to sell around 1.6820, with stop loss of 1.6920 and target price of 1.6720.