Nick Nasad
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EUR/NZD - After Sharp Slide Today, Further Weakness Ahead?

The EUR/NZD (like other EUR crosses) fell quite sharply today.

  • We run into some pivots now from the range the pair established back in late Sept/early Oct near 1.6410, where the pair stalled its decline.
  • This pared the rally of the last 2 weeks by about 40%, and just about tagged the 200-EMA (in gray).
  • The question now is, does today portend the start of a downswing?
  • The pair can certainly fall further - to the 61.8% retrace at 1.6280 which is also close to the old range's support.
  • For EUR bears, it may be prudent to see a bit of pullback to today's move, perhaps a test of 1.65 as resistance before entering shorts, though a break of 1.6410 and the 200-EMA is certainly a trigger for further falls.