EUR/NZD SHORT from 1.7580We have an M-Top formation at an area of resistance and over the last few hours this overbought pair has been unwinding.
The neckline of the M-Top has been broken and the MACD crossed south some hours ago and although there are headwinds that may hold up EUR/NZD BEARS, the technicals suggest that we should be headed for 1.7534 as a minimun initial target.
On H4 we can see that the 200 EMA has been a formidable barrier to EURNZD BULLS and this level has been tested 3 times and prevented price from moving higher.
The RSI on H4 was also o.b. but this is now reading 61 and dropping.
The Andean Oscillator sees the green BUY line heading south over the signal line and the red SELL line is rising.
This looks like a certain move south but the concern would be the 50 EMA 100 EMA and 200 EMA on H1 all of which now stand in the way of the BEARS.
This trade will have to be closely observed and if it looks like EUR/NZ BULLS are getting a second win then the position will have to be closed.
STOP currently is at 43 pips (1.7621) which is the recent high. This is a hard STOP so if we move back north this trade will have to be closed.
Target is initially 1.7535 but if price makes its way down there then the position would have to be re-evaluated.
