• EUR/NZD declined on Tuesday as increased risk aversion and prospect of greater Fed, ECB divergence weighed on euro.
• EUR/ NZD fell to 1.6712 close to the 38.2% fib. A break under 38.2% fib would unmask 1.6650 level in the short term.
• Technical signals are neutral as RSI is flat at 52, daily momentum studies are trending down.
• Strong resistance is located at 1.6822( 38.2%fib), any close above will push the pair towards 1.6963(23.6%fib)
• Immediate support is at 1.6709(50% fib) and break below could take the pair towards 1.6664 (21DMA).
Recommendation: Good to sell around 1.6730 , with stop loss of 1.6850 and target price of 1.6650
