FX.co ★ Technical analysis of EUR/NZD for September 29, 2016

EUR/NZD broke above the descending channel and after a corrective wave down found the support near 1.5340 where the 200 Moving Average was rejected. At the same time, the 61.8% Fibs applied to the channel breakout point was also rejected.

While forming a bottom near that support level, the pair formed a bullish divergence on the MACD. Today EUR/NZD attempted to break below the 50% Fibs (1.5400) level, although eventually it was rejected.

Overall, support levels are holding while the pair is trading above both the 50 and 200 Moving Averages. Therefore, consider buying EUR/NZD at the current level of 1.5430, targeting either 23.6% (1.5525) or 0% (1.5637) Fibs. The suggested stop loss is just below 200 MA, at 1.5350.

Support: 1.5344, 1.5400

Resistance: 1.5455, 1.5525, 1.5637