EUR/NZD may fall 84 - 124 pips

Our pivot point is at 1.8053.

Our preference

The downside prevails as long as 1.8053 is resistance.

Alternative scenario

The upside breakout of 1.8053, would call for 1.8120 and 1.8160.

Comment

The RSI is below 30. It could either mean that the pair is in a lasting downtrend or just oversold and therefore bound to retrace (look for bullish divergence in this case). The MACD is below its signal line and negative. The configuration is negative. Moreover, the price stands below its 20 and 50 period moving average (respectively at 1.8037 and 1.8031). Finally, the EUR/NZD has penetrated its lower Bollinger band (1.7989).

Supports and resistances

1.8160 **

1.8120 *

1.8053 **

1.8026

1.7975 last

1.7891

1.7851 **

1.7811 *

1.7771 **

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