FxWirePro: EUR/NZD set for bigger drop, but close below key fibo needed

• EUR/NZD dropped sharply on Tuesday as kiwi dollar received support from a significant package of monetary stimulus announced by China, New Zealand’s largest export partner.

• People's Bank of China Governor Pan Gongsheng announced plans to reduce borrowing costs and inject additional funds into the economy, aiming to ease the mortgage repayment burden for households.

•The positive sentiment boosted commodity prices, with oil prices rising over 2%. Copper prices reached a 10-week high, driven by expectations of increased demand from top consumer China

• The technical outlook remains bearish and points to eventual bigger losses, Fourteen-day momentum is negative, reinforcing the scope for a bigger slump  

• Immediate resistance is located at 1.7655(38.2%fib), any close above will push the pair towards 1.7791(50%fib)

• Support is seen at 1.7619(Lower BB) and break below could take the pair towards 1.7587 (23.6%fib)

Recommendation: Good to sell around 1.7640, with stop loss of 1.7740 and target price of 1.7540