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FxWirePro: EUR/NZD outlook weaker on renewed downside pressure

• EUR/NZD extended decline  on Friday  as kiwi dollar continued to gain after the RBNZ flagged it is now done easing after cutting rates on Thursday.

• The New Zealand dollar found additional support from upbeat retail sales and business confidence figures.

• The Reserve Bank of New Zealand cut its cash rate by 25 basis points to 2.25% but signaled the easing cycle could be nearing its end as the economy shows early signs of recovery.

• Reserve Bank of New Zealand officials on Thursday expressed confidence in the country’s ongoing economic recovery during testimony before parliament.

• Immediate resistance is located at 2.0410(38.2%fib), any close above will push the pair towards 2.0449(SMA 20).

• Immediate support is seen at 2.0193 (50%fib) and break below could take the pair towards 2.0125(Lower BB).

Recommendation: Good to sell around 2.0230 with stop loss of 2.0350 and target price of 2.0160
 

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