FxWirePro- Currency Strength Index (4- Hour chart)- Currency pairs to watch (EURUSD and AUDUSD) for the day)
FxWirePro: EUR/NZD reverses recent rally, bias back to downside
• EUR/NZD trickled lower on Monday as demand for kiwi dollar increased ahead of Reserve Bank of New Zealand rate decision on Wednesday.
• Markets expect RBNZ lift their cash rate by 50 basis points, though focus will also be on the tone of policymakers .
• At GMT 18:30, the pair was trading down 0.48 percent after hitting daily high at 1.7489.
• The pair failed to breach resistance at 1.7521 ( 23.6% fib) and dipped towards 1.7150 level . A break under (61.8% fib) would unmask 1.6980 level in the short term.
• Immediate resistance is located at 1.7212(50% fib), any close above will push the pair towards 1.7357 (38.2%fib).
• Immediate support is seen at 1.7076 (61.8% fib) and break below could take the pair towards 1.7014 (11DMA).
Recommendation: Good to sell around 1.7160 , with stop loss of 1.7250 and target price of 1.7080.