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FxWirePro: EUR/NZD extends drop, plunge to test a key fibo grows

• EUR/NZD  slumped on Tuesday as euro was weighed down against the New Zealand dollar  after RBNZ projected that it would hike interest rates as early as Sept next year.

• The Reserve Bank of New Zealand kept interest rates at 0.25% as anticipated however amazed many by projecting a rate of 0.49% by September 2022, and not much less than 1.78% by June 2024.

• EUR/ NZD fell to  1.6712  close to the 23.6% fib. A break under 23.6% fib would unmask 1.6650 level in the short term.

• Technical signals are bearish as RSI is at 45, daily momentum studies  5, 9 and 10 DMAs are trending down. 

• Strong resistance is located at 1.6771( 38.2%fib), any close above will push the pair towards 1.6796 (21DMA)

•  Immediate support is   at 1.6702 (23.6% fib)   and break below could take the pair towards 1.6655 (Ichimoku cloudbase).

Recommendation: Good to sell around 1.6760  , with stop loss of 1.6850  and target price of 1.6670
 

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