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