FxWirePro: EUR/NZD struggles to extend weakness below 1.70 handle, finds strong support at 55-EMA 1.6973

• EUR/NZD is extending weakness after rejection at channel top, slips lower to hover around 1.70 handle.
   
• Upside remains capped at 5-DMA at 1.7055, break above could see minor upside.
   
• Technical indicators are turning bearish. 5-DMA is sharply lower and Stochs have rolled over from overbought levels.
   
• MACD is on verge of bearish crossover on signal line. RSI is also biased lower.
   
• The pair is trading in a narrow range on the day and is holding support at 20-DMA at 1.6990.
   
• Break below 20-DMA finds next support at 55-EMA at 1.6973. Violation at 55-EMA sees further downside.
   
• Markets await RBNZ policy meet. The central bank is expected to hold the official cash rate at 1.75 percent this Thursday. 
   
• Focus will be on Governor Orr's take on inflation, the recent decline in the NZD and the new mandate of employment.

Support levels - 1.6990 (20-DMA), 1.6973 (55-EMA), 1.6915 (100-DMA) 

Resistance levels - 1.7056 (5-DMA), 1.7175 (May 1 high), 1.7225 (channel top)

Recommendation: Stay short on break below 1.70 handle, SL: 1.7055, TP: 1.6975/ 1.6915 (100-DMA), 1.6785 (23.6% Fib)

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -22.7965 (Neutral), while Hourly NZD Spot Index was at 36.4444 (Neutral) at 0900 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex. 

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