• EUR/NZD declined on Thursday as the pair attracted sellers after ECB signal end to bond buys in Q3.
•The move came as a surprise as investors had not anticipated any big policy announcements given the uncertainty unleashed by the war in Ukraine.
• The pair is currently approaching support at 38.2%fib. A break and daily close blow will accelerate further drop towards 1.6700 level.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 59 bullish, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 1.6034(50%fib), any close above will push the pair towards 1.6171 (61.8%fib).
• Strong support is seen at 1.5907(38.2%fib) and break below could take the pair towards 1.5737(23.6% fib )
Recommendation: Good to sell around 1.6020 with stop loss of 1.6120 and target price of 1.5900
