Following my previous EURNZD analysis on a higher timeframe (https://www.instaforex.com/forex_analysis/61436/), picture is very similar on smaller timeframe, confirming that trend is up, is very strong and valid.
The pair has rejected both the lower trendline of the ascending channel and simple uptrend trendline. The support has been found near 1.5687 where the price formed a double bottom reversal pattern. While the support has been rejected, a break above the downtrend trendline of the RSI oscilator, which took place this morning, could be the invitation for bulls to join the rally.
Consider buying EUR/NZD near the current level (1.5760) targeting 161.8% Fibonacci retracement (1.6050) applied to 1.5915 (a high reached on June 4) and 1.5687 (a low hit back on June 5). A breakout below S1 could result in further correction to S2 (1.5584). It seems nearly impossible that the trend will reverse down at this point taken all the facts described above.
Support: 1.5687, 1.5584
Resistance: 1.5915, 1.6056
The material has been provided by InstaForex Company – www.instaforex.com