EUR/NZD traded lower today, after it hit resistance at 1.6825, slightly below the downside resistance line drawn from the peak of October 16th. As long as the rate continues to trade below that line, we would consider the near-term outlook to be negative.
If the bears are strong enough to stay in the driver’s seat, we could soon see them challenging the 1.6690 zone, marked by Wednesday’s and Thursday’s lows. If they managed to overcome that zone, they could then aim the 1.6625 area, which provided support between December 26th and 31st. Another move lower would confirm a forthcoming lower low on the daily chart and could allow declines towards 1.6575,