• EUR/NZD declined on Thursday as the pair attracted sellers data showed after U.S. CPI data rose less than expected, opening the way for the Federal Reserve to slow the pace of its interest rate hikes.
• The consumer price index rose 0.4% last month after climbing by the same margin in September. Economists polled had forecast the CPI would advance 0.6%..
• Scope is growing for an eventual break under the 1.6840 (50%fib) level, an eventual break below 50%fib will accelerate further down.
• Technical signals are turning are bearish as RSI is lower at 44, daily momentum studies 5, 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.7093( 38.2%fib), any close above will push the pair towards 1.7194 ( 30DMA)
• Strong support is seen at 1.6840 (50%fib) and break below could take the pair towards 1.6713(Lower BB).
Recommendation: Good to buy around 1.6920, with stop loss of 1.7130 and target price of 1.6750.
