EURNZD: We see upside risk of a short-term bounce
The daily oscillator has picked up, and the price manages to hold the parallel support zone, moreover the daily RSI recovering from the oversold territory. Last week the cross was seen to recover to 1.6680 ahead of the resistance at 1.6730. A breakout above the resistance 1.6730 could strengthen the upward momentum, with a new target the resistance levels around 1.6850 and 1.7000.
A small bullish H&S pattern has formed in the hourly chart moreover daily indicators are very upbeat and has turned marketed bullish. Under these conditions, we forecast a limited downside approach (1.6450).
Note that only a break of these last barriers would lessen the risk of a dip back to a critical support zone between 1.6550-1.6520 below here 1.6450 its 100MA (Weekly) exists. Turning to the weekly chart, the RSI is close to the oversold territory.
Thus, we see upside risk of a short-term bounce in EURNZD. The short (two-five days view) outlook remains extremely favorable for the cross which has already rebounded mildly since testing the support at 1.6557 last Thursday.
A small bullish H&S pattern has formed in the hourly chart moreover daily indicators are very upbeat and has turned marketed bullish. Under these conditions, we forecast a limited downside approach (1.6450).
Note that only a break of these last barriers would lessen the risk of a dip back to a critical support zone between 1.6550-1.6520 below here 1.6450 its 100MA (Weekly) exists. Turning to the weekly chart, the RSI is close to the oversold territory.
Thus, we see upside risk of a short-term bounce in EURNZD. The short (two-five days view) outlook remains extremely favorable for the cross which has already rebounded mildly since testing the support at 1.6557 last Thursday.