The EUR/NZD has fallen in a neat zig-zag down to the lower trend-line of the correction back from the February lows. This is also the level of the S1 monthly pivot and price action has formed a 2-bar reversal pattern on it. A bounce is indicated although today’s activity remains muted. A break of the 1.6260 highs could act as confirmation of a new move up to 1.6340 initially, whilst a break below the 1.6050 support shelf – although a surprise – would confirm a break lower, targeting the 1.5590 lows.

Analysis prepared by:

Joaquin Monfort
Forex4you analyst