EUR/NZD breaks below 20-dma, on track to test 50-dma at 1.70, stay short

• EUR/NZD extends slump below 20-DMA, on track to test 50-DMA at 1.70.
   
• The pair is trading in a rising channel pattern and is extending downside after rejection at channel top.
   
• The pair has formed a 'Shooting Star' at highs and we see scope for further weakness. Bears now target 50-DMA at 1.70.
   
• Technical indicators are turning bearish and violation at 50-DMA will see further weakness.
   
• Stochs are showing a rollover from overbought levels and RSI has turned lower from near overbought levels.
   
• Break below 50-DMA will take the pair lower till next major support at 110-EMA at 1.6925 ahead of channel base at 1.6740.
   
• On the flipside, retrace above 5-DMA will see test of channel top at 1.7285. Break out at channel top negates bearish bias.

Support levels - 1.70 (50-DMA), 1.6925 (110-EMA), 1.6813 (Mar 13 low)

Resistance levels - 1.7164 (5-DMA), 1.72, 1.7285 (channel top)