FxWirePro: EUR/NZD runs out of steam but maintains bullish outlook
• EUR/AUD dipped on Tuesday as extreme positioning and overbought conditions encouraged profit-taking.
• Profit-taking has pushed EUR/AUD near the 9-day moving average, and a close below should accelerate the correction further lower.
• At GMT 17:20, the pair was trading 0.80% lower at 1.6467 , slightly lower from daily high at 1.6554.
• Technical pair is still trending higher with 5, 10 and 21-day MAs in bullish alignment
• On the upside, Immediate resistance is located at 1.6535 ( 50% fib), any close above will push the pair towards 1.6582 (Higher BB).
• On the downside, support is seen at 1.6430 (11 DMA) and break below could take the pair towards 1.6338 (61.8%fib).
Recommendation: Good to buy around 1.6430 with stop loss of 1.6333 and target price of 1.6600.