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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


 

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