• EUR/NZD declined on Tuesday as kiwi dollar jumped higher on lowering new COVID-19 infections in New Zealand.
•Despite the weaker New Zealand business confidence data, the kiwi saw a rebound as investors appeared more interested in seeing Covid cases decline.
• Recent drop has put EUR/NZD back below 38.2%fib and has put the 1.6731 (23.6%fib) at back in play
• Technical signals show the pair could lose more ground as RSI is at 41 bearish, and 9, 11,21 DMA’s are trending south.
• Immediate resistance is located at 1.6814 (38.2%fib), any close above will push the pair towards 1.6849 (21 DMA).
• Immediate support is seen at 1.6731 (23.6%fib) and break below could take the pair towards 1.6690 (6Th Aug low).
Recommendation: Good to sell round 1.6770, with stop loss of 1.6850 and target price of 1.6700
