• EUR/NZD after initially fell on Tuesday but the pair recovered some ground as investors braced for volatility ahead of midterm US election results and upcoming US inflation data.
• In an up-and-down session, the pair hit low at 1.6819 in early trading then recovered towards 1.6922.
• The pair inability to hold gains above 50%fib resistance, may increases the likelihood of a drop towards 1.6800 level.
• Technical signals show the pair could gain lose ground in the short-term as RSI is at 44 bearish, daily momentum studies 5, 9 and 11 DMAs are trending down.
• Immediate resistance is located at 1.6940(50%fib), any close above will push the pair towards 1.7036 (14DMA).
• Strong support is seen at 1.6823(Daily low) and break below could take the pair towards 1.6710 (38.2%fib ).
Recommendation: Good to sell around 1.6900 with stop loss of 1.7030 and target price of 1.6800
