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FxWirePro: EUR/NZD attracts selling interest, vulnerable to more downside

• 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   

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