Potential short on EURNZD.

3 feb 2019

Currently looking at EURNZD after the market open we opened a bit lower. We are holding at a previous support zone, now resistance aligned with the 38.70 fibonacci retracement at 1.6619 . We can also see how the SMA comes as resistance aligned with the fibonacci and previous support, confirming a legit resistance zone. I expect price to go lower and hit the 1st fib D extension at 1.6466 but I'd like to see price close back below 1.6600 on a hourly TF to confirm that vision. IF we go the opposite way and close above this resistance zone, I expect price to recover back to the strong monthly level 1.6700 which aligns with 71.00 fib level.