Yesterday, the EUR/NZD pair broke below the daily-scale MACD line at its intersection with the balance line. This is a strong signal for a continued decline.

The Marlin oscillator is also moving downward, already into the bearish zone. Downside targets are:

• 1.9519 (the August 8 low)
• 1.9350 (the July 11 low)
• 1.9188 (the price channel line, as a possible third target, though here the Marlin oscillator would be in oversold territory)

We expect a correction from the 1.9350 support level.

On the four-hour chart, price and the Marlin oscillator have formed a bullish divergence. However, since the price has passed the magnetic point on the daily chart, the correction is unlikely to be deep, and its potential target at 1.9728 (the MACD line) is not likely to be reached.