Technical analysis for the EUR/NZD is showing that the pair broke above descending price channel and previous high on the daily chart, signaling further upside potential ahead. The first target of this breakout is at 1.272 FIB extension around 1.7040, the second target is at 1.618 FIB extension around 1.7190 – 1.7200 where the pair is facing both dynamic and horizontal resistance.
We must keep in mind that this breakout occurred because of weakness in the NZD, not because of strength in the EUR, and that is a concern.
The support levels to watch for retest, rejection, and resumption of the daily bullish breakout are at 1.6800, 1.6735, and the key support zone between 1.6550 – 1.6486. If the price break below the key support zone between 1.6550 – 164.86, it will invalidate the bullish view and send the EUR/NZD pair back toward the previous weekly low at 1.6324.
Daily chart:
