FxWirePro: EUR/NZD finds support at 110-EMA, bearish divergence on RSI and Stochs keeps scope for downside

• EUR/NZD extends weakness below daily cloud, trades 0.11% lower on the day.
   
• The price action is holding support at 110-EMA at 1.6747, break below will see further weakness.
   
• Technical indicators are biased lower. MACD has shown bearish crossover on signal line.
   
• We evidence bearish divergence on RSI and Stochs which adds to bearish bias.
   
• Break below 110-EMA finds next major support at 200-DMA at 1.6427.
   
• On the flipside, 1.6867 (converged 21 & 55 EMAs) is strong support, we see upside only on break above.

Support levels - 1.6747 (110-EMA), 1.6645 (Jan 24 low), 1.6520 (Jan 11 low), 1.6427 (200-DMA)

Resistance levels - 1.6867 (converged 21 & 55 EMAs), 1.70 (cloud top), 1.71 (Feb 5 high)

Recommendation: Good to go short on break below 110-EMA, SL: 1.6870, TP: 1.6645/ 1.6520/ 1.6430

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -48.9264 (Neutral), while Hourly NZD Spot Index was at 72.777 (Neutral) at 0930 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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