• EUR/NZD declined sharply on Friday as expectations that RBNZ will raise interest rate boosted kiwi dollar across the board.
• The next policy meeting of RBNZ is on Feb. 28 and markets have shifted to imply around a 38% chance of a hike then, compared to almost no chance of a move a week ago.
• A close below support at 38.2% fib will give further momentum to bears, opening the way for a run towards 1.7450 level.
• Immediate resistance is located at 1.7576(50% fib), any close above will push the pair towards 1.7640(61.8%fib).
• Strong support is seen at 1.7509 (38.2% fib) and break below could take the pair towards 1.7435 ( 23.6%fib).
Recommendation: Good to sell around 1.7560 , with stop loss of 1.7650 and target price of 1.7450
