FxWirePro:EUR/NZD extends drop, critical support lies ahead
• EUR/NZD declined on Wednesday as traders remained short as investors waited for the outcome of ECB meeting on Thursday.
• EUR/NZD fell to test the 38.2% fib. A break under 38.2% fib would unmask 1.6600 level in the short term.
• Technicals leans bearish as RSI is at 44 bearsih, and 5, 9,11 DMA’s are trending south.
• Immediate resistance is located at 1.6729 (5 DMA), any close above will push the pair towards 1.6769 (50% fib).
• Immediate support is seen at 1.6666 (38.2% fib) and break below could take the pair towards 1.6609 (Ichimoku cloud base).
Recommendation: Good to sell around 1.6700, with stop loss of 1.6770 and target price of 1.6600