EUR/NZD likely to pull back towards 1.5670 - Natixis

Analysts at Natixis explain that given that the weekly stochastic is nearing overbought territory for EUR/NZD cross and that the daily MACD, a trend indicator, has turned bearish, it is likely the pair will pull back towards 1.5670 (daily Bollinger moving average) before eyeing the support at 1.5472 (9-week moving average).

Key Quotes

“These pullbacks will be an opportunity for the EUR/NZD to gather its breath before staging new rebounds: the development of an upward bubble in the weekly chart points to a new rise towards 1.5990-1.6010 (daily parabolic). A breakout above these resistance levels would enable the pair to eye 1.6182 (upper band of daily Bollinger) and 1.6420 (Fibonacci projection).”

“Take advantage of any pullbacks towards 1.5472 to buy the EUR/NZD, with as first major target 1.6010 (setting the stop loss below 1.5350).”