• EUR/NZD declined on Wednesday as traders remained short as U.S. fiscal stimulus hopes propelled risk sentiment to new heights.
• The pair cross pair dropped to test 1.7041 (23.6%fib ). A break under 1.7041 would unmask 1.6900 Psychological level..
•Enthusiasm for risk-taking is likely to override even after Senate Majority Leader Mitch McConnell on Tuesday put off a vote on increasing COVID-19 relief checks.
• Technicals leans bearish as RSI is at 42 bearish, and 5, 9,11 DMA’s are trending south.
• Immediate resistance is located at 1.7141 (5 DMA), any close above will push the pair towards 1.7161 (11DMA).
• Immediate support is seen at 1.7041 (23.6% fib) and break below could take the pair towards 1.7000 (Psychological level).
Recommendation: Good to sell around 1.7050, with stop loss of 1.7150 and target price of 1.6940
