EURNZD has been outperforming over the last couple weeks, after the rebound on 20- and 40-simple moving averages (SMAs) in the daily timeframe. The price reached a fresh almost three-year high of 1.7673, during today’s trading session with strong momentum. The MACD oscillator is strengthening its positive momentum as it lies above its red-trigger and the zero lines. Moreover, the RSI indicator entered the overbought zone after the bounce off the threshold of 50.
If price action remains above the 1.7480 support barrier, there is scope to test the next psychological resistance of 1.8000, where it topped in September 2015.
On the flip side, if the pair fails to extend gains and changes direction, it would shift the focus to the downside. The next support to watch is the 20-and then the 40-SMAs at 1.7374 and 1.7277 respectively. Further bearish movement could push the pair until the 1.7110 support.
Overall, both the short- and medium-term outlooks are currently looking bullish, though caution is warranted in the near-term as there are signs of an overbought market, especially in the technical indicators.
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