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FxWirePro:EUR/NZD could collapse further under key fibo support, good to sell on rally

• EUR/NZD was little changed on Thursday as currency traders awaited European Central Bank meeting on Thursday.

• EUR/NZD is approaching to test support at 1.6560 (23.6%fib). A daily close above 1.6560  will accelerate further downside.

• The ECB meets on Thursday and is   expected to keep policy on hold, there is a belief ECB   will address rising yields in the euro area.

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

• Immediate resistance is located at 1.6643 (21DMA), any close above will push the pair towards 1.6713(38.2%fib).

• Strong support is seen 1.6560 (23.6%fib),a break below could take the pair towards 1.6426(Lower BB).

Recommendation: Good to sell  around 1.6650, with stop loss of 1.6550 and target price of 1.6730
 

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