EURNZD recorded a fresh four-month high of 1.6987 earlier today, finding resistance near the 200-day simple moving average (SMA). The RSI and the MACD are increasing distance above the 50 level and the zero line respectively, increasing speculation for more upside pressure in the short-term.
In case the pair maintains its short-term direction to the upside after the bounce off the 18-month bottom of 1.6885, the bulls will probably challenge the 50.0% Fibonacci retracement level of the downleg from 1.7925 to 1.6885 around 1.7110. A break higher could last until the 1.7200 handle, taken from the peak on January 3.
On the flipside, a decline below the 38.2% Fibonacci of 1.6915 may drive the price towards the 1.6850 support and the 20-day SMA near 1.6805. Beneath the latter, the 1.6725 barrier and the 23.6% Fibonacci of 1.6675, which coincides with the 40-day SMA are coming into view.
Summarizing, if the price surpasses the 200-day SMA, it could open the door for more bullish orders until the next resistance.
