FX.co ★ Technical analysis of EUR/NZD for August 19, 2015

EUR/NZD correction down

After forming a double top near 1.71, EUR/NZD formed a bearish divergence on the DeMarker oscillator signaling the potential correction or reversal to the downside. Although, the price rejected 200 Moving Average multiple times, it could be on its way to test it once again.

It seems that previous resistance R1 (1.6786) is still valid since it's being rejected today once again. Overall, it is likely that price will consolidate between already established support and resistance levels R1 and S1 - that is also Fibonacci resistance level applied to the last wave up (13.08 low and 14.08 high).

Consider selling EUR/NZD on any minor pullbacks while it is trading near R1, targeting S1 (1.6600-1.6550 area). Since it is a counter-trend trade, a tight stop loss should be used just above R1 high - 1.6815.

Support: 1.6593

Resistance: 1.6786