FxWirePro: EUR/NZD upside pauses at 61.8% Fibo, bias higher, good to go long on dips

• EUR/NZD edges lower from session highs at 1.6027, bias remains bullish.
   
• Data released earlier today showed, EZ retail sales rose by 0.5% m/m in June, well above market expectations of a 0.1% rise.
   
• The final IHS Markit Eurozone PMI Composite Output Index posted a six-month low of 55.7 in July, down from 56.3 in June and the earlier flash estimate of 55.8.
   
• The pair has broken major resistance at 1.5775 and price action is above major moving averages and daily Ichi cloud.
   
• We see scope for test of 1.6418 (78.6% Fib retrace of 1.6930 to 1.4535 fall).
   
• Weakness likely on retrace below daily cloud. Drag till 100-DMA at 1.56 then likely.

Support levels - 1.5825 (5-DMA), 1.5765 (trendline), 1.5708 (20-DMA)

Resistance levels - 1.6015 (61.8% Fib retrace of 1.6930 to 1.4535 fall), 1.6236 (May 19 high), 1.6418 (78.6% Fib)

Recommendation: Good to go long on dips around 1.5950/60, SL: 1.5765, TP: 1.60/ 1.6080/ 1.6230/ 1.64

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 79.633 (Slightly bullish), while Hourly NZD Spot Index was at -37.9062 (Neutral) at 1000 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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