FxWirePro:EUR/NZD drifts lower , could be on verge of a bigger drop

• EUR/NZD fell on Wednesday following the Federal Reserve's decision to lower its policy rate by 50 basis points, which passed with an 11-1 vote.

• The central bank’s dot plot projections were lowered across tenors with Fed funds seen at 4.4% by the end of 2024 and 3.4% at end of 2025.

• Fed Chair Jerome Powell noted that the labor market has softened, but emphasized that the committee does not feel rushed to take action.

• Technical signals show the pair could lose more ground as RSI has turned sharply lower, and 5, 9 DMA’s are trending south.

• Immediate resistance is located at 1.7938(50%fib), any close above will push the pair towards 1.8053(61.8%fib).

• Immediate support is seen at 1.7835(38.2%fib) and break below could take the pair towards 1.7710 (23.6% fib).

Recommendation: Good to sell round 1.7900, with stop loss of 1.8000 and target price of 1.7810