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EURNZD In A Slippery Slope, Bears Look At 5-Month Low

EURNZD is holding to losses, slipping beneath the short-term moving averages in the daily timeframe. The strong sell-off day on Thursday is driving the pair towards the five-month low of 1.6615. The MACD is heading lower and is approaching the red trigger line for a bearish cross, strengthening its bearish momentum, while the RSI dropped below the 50 level with aggressive movement.

Should the price decisively close below 1.6615, this could extend the downtrend towards the 1.6520 barrier acting as support back in July 2019. More aggressive losses could send the pair even lower to 1.6290 mark, taken from the trough on March 2019.

On the other hand, an increase could meet the 20-period moving average currently at 1.6742 and the 40-period SMA at 1.6820. In addition, the Ichimoku cloud is a major resistance for the bulls between the mentioned SMAs. Above those levels, the pair could reach the 23.6% Fibonacci retracement level of the downleg from 1.7700 to 1.6615 near 1.6870.

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All in all, the market is expected to hold bearish in medium-term after the bounce off the 1.7700 handle.