EURNZD has recorded a continuous bearish move since October’s peak.
Prices picked up slightly as we began December. However, strong resistance was evident against the monthly downward trendline, which is also a confluence of the lower border of the Ichimoku cloud.
The recent hidden bearish divergence noted on the momentum indicator suggests another attempt at monthly lows.
Another attempt at the specified confluence area could lead prices to the 23.6% of the 1.8021/1.6942 downside Fibonacci leg, and then up to 38.2%.
A short-term perspective eyes that prices remain indecisive, hovering at the 50% of the 1.6945/1.7281 upside Fibonacci leg.
Currently, the lower border of the cloud is once again maintaining some resistance, as we look to see if engulfment is a possibility.
The recent bullish divergence could lead to a break away from the 50%, and move towards 38.2%. This could give a chance for the pair to reclaim monthly highs.