The price chart of EUR/NZD has been distorted by a very thin January 1 trading secession. To our knowledge a high has been seen at 1.7125 or just above the 50% corrective target at 1.7105. We are currently looking for a break below support at 1.7000 to confirm that a top is in place and more downside pressure towards 1.6115 should be expected.

That said, we have to accept the outside chance of a final spike closer to the 61.8% corrective target at 1.7289 as long as support at 1.7000 is able to protect the downside.

R3: 1.7289

R2: 1.7179

R1: 1.7125

Pivot: 1.7085

S1: 1.7042

S2: 1.7000

S3: 1.6951

Trading recommendation:

We are short EUR at 1.6975 with our stop placed at 1.7175.