FxWirePro: EUR/NZD repeatedly capped by key resistance ,bears set to regain control

• 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