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FxWirePro: EUR/NZD fibo rejection triggers sizeable pullback,good to sell on rally

• EUR/NZD initially strengthened on Wednesday but  gave up   ground as investors scaled back ECB rate-hike bets.

•European Central Bank President Lagarde said the bank was "very unlikely" to raise rates in 2022 , a view echoed by ECB member Francois Villeroy de Galhau . 

•Money markets trimmed expected H2 2022 ECB rate hikes back to roughly one 10bp rise from two earlier this week.

•EUR/NZD  initially gained but found seller at 1.6299. A break and daily close below  1.6190 (38.2%fib) will accelerate downside further.

•Technical signals are bearish as RSI is at 34 bullish, daily momentum studies  5, 9 and 11 DMAs are trending  down. 

•Immediate resistance is located at 1.6279 (50%fib), any close above will push the pair towards 1.6373 (61.8%fib).

•Strong support is seen at 1.6190 (38.2%fib) and break below could take the pair towards 1.6082(23.6% fib )

Recommendation: Good to sell around 1.6220, with stop loss of 1.6320 and target price of 1.6150
 

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