FxWirePro:EUR/NZD reverses recent rally, bias back to downside

• EUR/NZD declined on Thursday as intensifying global risk aversion over war, inflation and diminishing economic growth prospects weighed on the pair.

• The souring sentiment dealt a particularly harsh blow to the euro as it exposed to Ukraine war risks and China's COVID-related economic disruptions.

• EUR/AUD chart has taken a turn for the worse after Thursday large drop. Overall risk growing for a bigger drop to retest 1.6543 (50%fib) support.

• Immediate resistance is located at 1.61674( 38.2%fib), any close above will push the pair towards 1.6851 ( 23.6%fib)

• Support is seen at 1.6543 (50%fib) and break below could take the pair towards 1.6497 (11DMA).

Recommendation: Good to sell on rally around 1.6610, with stop loss of 1.6750 and target price of 1.6450.