- EURNZD confirmed a bearish breakdown and dropped to the lowest level since July 23.
- The attempted recovery move should still be seen as an opportunity for bearish traders.
- The pair seems vulnerable to slide below 1.7400 handle and test 1.7320-1.7300 support.
- The 1.7600 mark should cap the upside and act as a stop-loss level for bearish positions.
In this week's #ThrowbackThursday we will revisit the short-term EURNZD bearish view initiated on October 23. As was expected, the pair confirmed a near-term bearish breakthrough a confluence support near the 1.7680-70 region – comprising the lower boundary of over one-month-old ascending channel and the very important 200-day SMA. The subsequent downfall dragged the pair to our downside target, around the 1.7445-40 area, the lowest level since July 23.
The pair found some support near the mentioned region and staged a modest recovery on Thursday, though the near-term bias remains tilted firmly in favour of bearish traders. The negative outlook is reinforced by the fact that technical indicators on the daily chart are holding in the bearish territory and are still far being in the oversold zone. Hence, the attempted recovery should be seen as an opportunity to initiate fresh bearish positions.
The pair remains vulnerable to prolong the downward trajectory, even below the 1.7400 handle, towards testing the next major support near the 1.7320-1.7300 region. On the flip side, the 1.7600 mark should cap the upside and act as a stop-loss level for bearish traders