EUR/NZD may fall 61 - 89 pips

Our pivot point stands at 1.8181.

Our preference

The downside prevails as long as 1.8181 is resistance.

Alternative scenario

Above 1.8181, look for 1.8229 and 1.8257.

Comment

The RSI is trading below 30. This could mean that either the pair is in a lasting downtrend or just oversold and that therefore a rebound could shape (look for bullish divergence in this case). The MACD is negative and below its signal line. The configuration is negative. Moreover, the price stands below its 20 and 50 period moving average (respectively at 1.8163 and 1.8194). Finally, the EUR/NZD is trading below its lower Bollinger band (standing at 1.8131).

Supports and resistances

1.8257 **

1.8229 *

1.8181 **

1.8162

1.8122 last

1.8061

1.8033 **

1.8004 *

1.7976 **

Number of asterisks represents the strength of support and resistance levels.