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FxWirePro: EUR/NZD seems poised to drop under major fibo support

• EUR/NZD dipped on Monday as rise in commodity prices boosted the commodity-price sensitive New Zealand dollar.

• EUR/NZD   scope is for a collapse under major 1.6623 23.6% fibo support. Break below the 23.6% fibo  would see much bigger losses in coming sessions.

• Technical signals show the pair could gain more ground in the short-term as RSI is at 45 bearish, daily momentum studies  5, 9 and 11 DMAs are trending  down.

• Immediate resistance is located at 1.6674 (5DMA), any close above will push the pair towards 1.6728 (38.2%fib).

• Strong support is seen at 1.6623 (23.6%fib) and break below could take the pair towards 1.6551 (Lower BB )

Recommendation: Good to sell around 1.6650, with stop loss of 1.6720 and target price of 1.6470

 

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