• EUR/NZD downtrend lost steam on Monday as oil prices retreated from highs as the United States and Europe considered banning Russian crude.
• Oil prices hit 14-year highs after the United States and European allies considered banning Russian crude imports.
•EUR/NZD remains vulnerable as geopolitical uncertainties and stagflation risks should limit EUR/NZD rallies.
• Technical signals show the pair could fall further ground in the short-term as RSI is at 16 bearish, daily momentum studies 5, 9 and 11 DMAs are trending down.
• Immediate resistance is located at 1.5910 (38.2%fib), any close above will push the pair towards 1.6042(50%fib).
• Strong support is seen at 1.5731(23.6%fib) and break below could take the pair towards 1.5645 (Lower BB).
Recommendation: Good to sell around 1.5880 with stop loss of 1.6000 and target price of 1.5720
