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FxWirePro: EUR/NZD extends drop, faces 23.6% fib support

• EUR/NZD fell below 1.7500 level on Thursday as increased risk appetite boosted kiwi dollar.

• On the data front, credit card spending in New Zealand increased 3.3% year on year through November, after falling 2.8% year on year in October.

• A daily close below 23.6%fib will further improve the bearish outlook, and open the possibility of a drop towards 1.7300  level. 

• Technical lean bearish, RSI is   sharply lower at 37, momentum studies, 9, 11 DMAs falling southwards.

• Immediate resistance is located at 1.7528 (38.2% fib), any close above will push the pair towards 1.7553 ( 5DMA)

• Support is seen at 1.7390 (23.6%fib) and break below could take the pair towards 1.7334(May 8th low).

Recommendation: Good to sell around 1.7490, with stop loss of 1.7600  and target price of 1.7400.
 

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