• EUR/NZD recovered some ground on Wednesday but failed to hold onto gains as Fed-ECB policy divergence kept the pair under bearish pressure.
• Pair recovered to 1.6165 but is unable to find traction,failure to close above 38.2%fib is bearish sign
• EUR/ NZD is trading close to the 23.6% fib. A daily close under 1.6115 (23.6% fib) should lead to bigger losses in coming sessions.
• Technical signals are bearish as RSI is at 42, daily momentum studies 5, 9 and 10 DMAs are trending down.
• Strong resistance is located at 1.6175( 5DMA), any close above will push the pair towards 1.6241( 38.2%fib).
• Immediate support is at 1.6115 (23.6% fib) and break below could take the pair towards 1.6079(Lower BB).
Recommendation: Good to sell around 1.6170 , with stop loss of 1.6250 and target price of 1.6080
