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FxWirePro: EUR/NZD capped by the 50.0% fibonacci, good to sell on rallies

• EUR/NZD initially dipped on Thursday but recovered ground  as easing concerns about the economic hit from the Omicron COVID-19 variant helped support riskier currencies.

• The pair is currently approaching resistance at 1.6661 (38.2%fib). A clean and sustained break above 38.2%fib will signal a bullish revival.

• Technical signals show the pair could gain more ground in the short-term as RSI is at 60,while moving averages are trading north .

• Immediate resistance is located at 1.6661 (38.2%fib), any close above will push the pair towards 1.6782(23.6%fib).

• Strong support is seen at 1.6569(50%fib) and break below could take the pair towards 1.6500(14DMA )

Recommendation: Good to buy around 1.6640 with stop loss of 1.6800 and target price of 1.6770

 

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