FxWirePro:EUR/NZD gives back chunk of early gains, eyes another drop

• EUR/NZD initially gained  on Tuesday but rally fizzed as investors awaited RBNZ rate decision on Wednesday.

• The New Zealand's central bank (RBNZ) will likely follow the RBA, which kept interest rates unchanged on Tuesday.

• Selling pressure will remain in the short-term, only a move above 1.7856 ( 50 % fib) strong resistance  will shift the bias higher.

• Technical signals show the pair could lose more ground as RSI is at 43 bearish, and 9, 11,21 DMA’s are trending south. 

• Immediate resistance is located at 1.7741 (38.2%fib), any close above will push the pair towards 1.7773(11DMA).

• Immediate support is seen at 1.7608(23.6% fib) and break below could take the pair towards 1.7544 (Oct 2nd low).

Recommendation: Good to sell round 1.7720  , with stop loss of 1.7870 and target price of 1.7600