• EUR/NZD recovered some ground on Wednesday as kiwi dollar weakened as risk sentiment softened as China’s monetary easing and hopes of U.S.-China trade de-escalation has been muted.
• The Kiwi dollar, often seen as a risk-sensitive currency, weakened as concerns mounted over the effectiveness of China’s stimulus and uncertainty around the upcoming U.S.-China trade talks.
• The muted response to policy actions and global trade developments led investors to shift toward safer or more stable currency pairs, helping lift the euro against the New Zealand dollar.
• Technical signals are bearish as RSI is heading down at 48, daily momentum studies 5, 9 and 11 DMAs are trending down.
• Immediate resistance is located at 1.9148(38.2%fib), any close above will push the pair towards 1.9402(50%fib)
• Strong support is seen at 1.8817 (23.6%fib ) and break below could take the pair towards 1.8720(Lower BB).
Recommendation: Good to sell around 1.9040, with stop loss of 1.9100 and target price of 1.8900.
