FxWirePro: EUR/NZD range bound in the short term, primary trend still lower

• EUR/NZD recovered some ground on Wednesday but gains were limited as fears of  soaring European energy prices  kep gains in check .

• Investors will scrutinize Thursday's release of minutes from the ECB's July 21 meeting, which resulted in a 50bp rate hikete hike.

• EUR /NZD sentiment is bearish  as Eurozone  energy supply fears  and Eurozone  growth   concerns is likely to pull  the euro lower against kiwi dollar.

• Technical signals show the pair could lose  more ground  in the short-term as RSI is lower at 45,while moving averages 5,9 and 11 DMA’s are trending lower.

• Immediate resistance is located at 1.6125( 5DMA), any close above will push the pair towards 1.6213 ( 38.2% fib).

• Immediate support is seen at 1.6016 (23.6%fib) and break below could take the pair towards 1.5928 (Lower BB).

 Recommendation: Good to sell around 1.6110, with stop loss of 1.6250 and target price of 1.6100.