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FxWirePro:EUR/NZD extends drop, critical support lies ahead

• EUR/NZD declined on Wednesday  as commodity-linked currencies strengthened   as the impact of an escalating conflict in Ukraine kept prices surging for oil and other raw materials. 

•Crude oil futures surged above $110 a barrel, and wheat and aluminum prices jumped, with Western sanctions on Russia over its invasion of Ukraine seen disrupting   commodities supply.

• Any upside correction is likely to be temporary as barrier at 1.6563 (Ichimoku cloud base) is set to restrict  higher move.

• Technical signals show the pair could gain more ground as RSI is at 25 bearish, and 9, 11,21 DMA’s are trending south. 

• Immediate resistance is located at 1.6476 (Daily high), any close above will push the pair towards 1.6496 (5 DMA).

• Immediate support is seen at 1.6351 (25th Nov 2021 low) and break below could take the pair towards 1.6257 (25th Nov 2021 low).

Recommendation: Good to sell round 1.6390, with stop loss of 1.6500 and target price of 1.6300
 

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