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FxWirePro: EUR/NZD hits fresh one-year low at 1.5220, momentum bearish, scope for test of 1.5080

  • EUR/NZD slips lower, hits fresh one-year low of 1.5220, momentum bearish, we see scope for test of 1.5045 levels.
     
  • The pair has broken below 200-SMA on the weekly charts, Technical indicators are heavily bearish.
     
  • The pair finds next major support on the downside at 1.5080 levels and then at 1.4787.
     
  • Uncertainty in the euro area post-Brexit and rising commodity prices (which are supportive for NZD) weigh negatively for the pair.
     
  • Bearish invalidation only above 50-DMA currently at 1.6182.

Recommendation: Good to short rallies, SL: 1.6182, target: 1.5080/1.4935/1.4787
 

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