• EUR/NZD initially gained on Tuesday but gave up some ground as dovish comments from the ECB weighed on euro.
• ECB conservative Isabel Schnabel highlighted that the prospect of additional interest rate hikes is rather unlikely in light of a surprisingly significant drop in inflation.
• The euro erased eariler gains against the kiwi dollar , the pair was last up at 0.04% at 1.7585 .
• A close below 23.6%fib, would add to pair’s bearish structure, opening the way for 1.7500 level
• From a technical viewpoint, RSI is strongly bearish at 33, daily momentum studies, 5, 10 and 11 daily MAs are pointing lower.
• Immediate resistance is located at 1.7645 (38.2%fib), any close above will push the pair towards 1.7740(50%fib).
• Immediate support is seen at 1.7520 (23.6%fib) and break below could take the pair towards 1.7487(July 6th low).
Recommendation: Good to sell around 1.7570, with stop loss of 1.7700 and target price of 1.7500
