FxWirePro: EUR/NZD finds strong support at 110W EMA at 1.6659, break below to see further weakness

EUR/NZD chart on Trading View used for analysis

• EUR/NZD is extending weakness for the 3rd straight week. Focus on German and EZ GDP data.
   
• The pair has paused downside at strong support at 110W EMA at 1.6659. Break below will see further weakness. 
   
• German economy is likely to have contracted 0.1% q/q in Q3, following a 0.5 percent expansion in the previous quarter. An above-forecast reading may put a bid under the EUR. 
   
• That said, Italy-EU standoff continues to weigh on the single currency and hence upside could be short-lived.
   
• Technical studies are supportive for further downside in the pair.
   
• Break below 110W EMA could see drag till weekly cloud base at 1.6357 ahead of 50% Fib at 1.6231.
   
• On the upside, break above 1H 55-EMA at 1.6716 could see some upside. Test on 1H 110-EMA at 1.6786 likely.

Support levels - 1.6659 (110W EMA), 1.6357 (weekly cloud base), 1.6231 (50% Fib)

Resistance levels - 1.6716 (1H 55 EMA), 1.6740 (5-DMA), 1.6786 (1H 110 EMA)

Recommendation: Watchout for break below 110W EMA to go short, target 1.6360/ 1.6230

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.