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FxWirePro: EUR/NZD rally capped by 14-day moving average,good to sell on rally

• EUR/NZD retreated after reaching 1.7819 level on Wednesday  after data showed euro zone retail sales fell much more than expected in August.

• The European Union's statistics office Eurostat said retail sales in the 20 countries sharing the euro fell 1.2% month-on-month for a 21% year-on-year decline in August..

• EUR/NZD dipped to hit daily at 1.7833 high and retreated to trade last at 1.7755. Sustained break below   at 1.7645 will send the pair towards 1.7550 level .

• Technical signals show the pair could gain more ground in the short-term as RSI is at 38 bullish, daily momentum studies  5, 9 and 11 DMAs are trending  down. 

• Strong resistance is located at 1.7773(38.2%fib), any close above will push the pair towards 1.7810 (14DMA).

• Strong  support is seen at 1.7696 (5DMA) and break below could take the pair towards 1.7645 (23.6%fib ).
Recommendation: Good to sell  around 1.7760, with stop loss of 1.7850 and target price of 1.7680

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