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FxWirePro: EUR/NZD s edges higher but outlook still bearish

• EUR/NZD initially dipped  on Monday  but recovered some ground  as the pair struggled for direction amid Euro-zone recession fears and anticipated ECB hikes.

• ECB is expected to hike interest rates by another quarter percentage point on Thursday to tame stubborn inflation.

• A close below 38.2%fib, would add to pair’s bearish structure, opening the way for 1.7520 level

• From a technical viewpoint, RSI  is strongly bullish at 49, daily momentum studies, 5, 10 and 11 daily  MAs are pointing lower.

• Immediate resistance is located at 1.7602 (50%fib), any close above will push the pair towards 1.7620(9DMA).

• Immediate support is seen at 1.7517 (38.2%fib) and break below could take the pair towards 1.7420 (May 15th low).

Recommendation: Good to sell  around 1.7600, with stop loss of 1.7680 and target price of 1.7520
 

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