• EUR/NZD declined on Thursday as investors weighed the risks of further monetary policy tightening by the European Central Bank (ECB) and of a U.S. recession.
• A close below support at 23.6%fib will give further momentum to bears, opening the way for a run towards 1.7200 level.
•Technicals are favouring bearish sentiment as RSI is falling and the pair is trading below 5,9 & 21-DMAs.
• Immediate resistance is located at 1.7388 (11DMA), any close above will push the pair towards 1.7425 (38.2%fib).
• Immediate support is seen at 1.7261 (23.6%fib) and break below could take the pair towards 1.7198(May 11th low).
Recommendation: Good to sell round 1.7330, with stop loss of 1.7430 and target price of 1.7250
