FxWirePro: EUR/NZD capped by the 38.2% fibonacci, good to sell on rallies

• EUR/NZD recovered some ground on Wednesday but gains were limited  as the prospect of new Western sanctions on Russia and the upcoming French presidential election capped gains.

• Pair traded in 1.5642/1.5783 range and was last trading at 1.5746 into the US afternoon. 

• Euro is likely to come  under pressure against commodity currencies as focus  will turn back on Russia-Ukraine conflict.

• Technical signals are bearish  as RSI is at 32, daily momentum studies  5,9 and 10 DMAs are trending down. 

•  Immediate resistance is located at 1.5775 ( 38.2%fib), any close above will push the pair towards 1.5845 (14DMA).

• Strong  support is seen at 1.5623 (Lower BB ) and break below could take the pair towards 1.5523(23.6%fib).

Recommendation: Good to buy  around 1.5750, with stop loss of 1.5890 and target price of 1.5670.