• EUR/NZD initially gained on ECB’s first rate hike but reversed course amid persisting concerns about slowing growth and rising inflation.
• The European Central Bank raised its interest rates for the first time in over a decade today, hiking it by a bigger-than-expected 50 basis points.
• EUR/NZD dived below the 38.2% fib and trades down to a 1.6325 low.
• Technical lean bearish, RSI is trending lower, momentum studies, 9, 11 DMAs falling southwards.
• Immediate resistance is located at 1.6389( 5 DMA), any close above will push the pair towards 1.6498(38.2% fib)
• Support is seen at 1.6294(23.6% fib) and break below could take the pair towards 1.6207 (Lower BB).
Recommendation: Good to sell around 1.6350, with stop loss of 1.6450 and target price of 1.6240
