• EUR/NZD declined on Thursday as expectation RBNZ would raise rates at its Oct. 6 policy meeting boosted kiwi dollar.
• The market is fully priced for a quarter-point hike to 0.5%, with another pencilled in for November.
• Todays drop has put EUR/NZD back below 50%fib and has put the 61.8%fib( 1.6671) back in play.
• Technical signals show the pair could lose more ground as RSI is turning lower , and 9, 11,21 DMA’s are trending south.
• Immediate resistance is located at 1.6793 (38.2%fib), any close above will push the pair towards 1.6671(21 DMA).
• Immediate support is seen at 1.6727 (38.2%fib),and break below could take the pair towards 1.6671(21 DMA)..
Recommendation: Good to sell round 1.6780 with stop loss of 1.6900 and target price of 1.6700
