EURNZD has been overperforming over the last two weeks, after the rebound on the 1.6560 support barrier. The price reached a fresh seven-month high of 1.7317, during today’s trading session but currently, it remains below the 1.7290 resistance level.
In the daily timeframe, 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 bearish threshold of 30.
If price action climbs above 1.7290 (immediate resistance), there is scope to test 1.7477, taken from the peak on December 2017.
On the flip side, if the pair fails to extend gains would change direction and shift the focus to the downside. The next support to watch is the 40 and then the 20 simple moving averages (SMAs) in the daily chart at 1.6894 and 1.6852 respectively.
When looking at the bigger picture the pair lacks a clear as it has been holding within a narrow range of 1.6560 – 1.7290 over the last six months.
