• EUR/NZD initially gained on Tuesday but gave up most of the ground as market gauged Fed's rate policy.
• The euro erased Monday’s gains against the kiwi dollar , the pair was last down at 0.24% at 1.6570 .
• A close below 38.2%fib, would add to pair’s bearish structure, opening the way for 1.6420 level
• From a technical viewpoint, RSI is strongly bullish at 40, daily momentum studies, 5, 10 and 11 daily MAs are pointing lower.
• Immediate resistance is located at 1.6608 (14DMA), any close above will push the pair towards 1.6682(50%fib).
• Immediate support is seen at 1.6533 (38.2%fib) and break below could take the pair towards 1.6418(Dec 6th low).
Recommendation: Good to sell around 1.6570, with stop loss of 1.6690 and target price of 1.6500
