• EUR/NZD recovery extended towards 1.6288 on Thursday as comments by the European Central Bank President Christine Lagarde boosted euro.
• Markets digested Lagarde's comments not as effective in asserting the accommodating position of the ECB that the markets were expecting.
• EUR/NZD selling pressure will remain in the short term, only a move above 1.6270 (38.2%fib) will shift the bias higher.
• From a technical viewpoint, RSI is strongly bearish at 34, daily momentum studies, 5, 10 and 11 daily MAs are pointing southwards.
• Immediate resistance is located at 1.6245 (11DMA), any close above will push the pair towards 1.6270 (38.2%fib).
• Immediate support is seen at 1.6158 (23.6% fib) and break below could take the pair towards 1.6100 (Psychological level).
Recommendation: Good to sell around 1.6230, with stop loss of 1.6300 and target price of 1.6150.
