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

•  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.