• EUR/NZD recovered some ground on Tuesday as surprise increase in U.S. consumer prices and improved German investor morale data supported euro.
• Data showed an unexpected rise in U.S. consumer prices for November. This increase occurred despite a drop in gasoline costs, which was outweighed by rises in rents.
• The ZEW economic research institute recorded an increase in its economic sentiment index to 12.8 points in December, surpassing analysts' expectations.
• Pair traded in 1.7493 /1.7565 range and was last trading at 1.7601 level.
• Technical signals are bearish as RSI is at 35, daily momentum studies 5,9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.7593 ( 38.2%fib), any close above will push the pair towards 1.7624 (11DMA)
• Strong support is seen at 1.7493 (23.6% fib ) and break below could take the pair towards 1.7421 (15th June low)
Recommendation: Good to sell around 1.7570, with stop loss of 1.7700and target price of 1.7500.
