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FxWirePro: EUR/NZD close below key fibo adds to further bearish bias, good to sell on rally

• EUR/NZD dipped on Thursday  as rise in commodity prices and increased risk appetite boosted the commodity-price sensitive New Zealand dollar.

•Risk appetite returned to financial markets a day after the U.S. Federal Reserve kept benchmark interest rates on hold.

• EUR/NZD  is approaching support 1.7985. A break and daily close  will accelerate further drop towards 1.7900 level.

• Technical signals show the pair could gain more ground in the short-term as RSI is at 49 bullish, daily momentum studies  5, 9 and 11 DMAs are trending  down.

• Immediate resistance is located at 1.8089 (50%fib), any close above will push the pair towards 1.8118 (9DMA).

• Strong support is seen at 1.7985(38.2%fib) and break below could take the pair towards 1.7857 (23.6% fib )

Recommendation: Good to buy around 1.8020, with stop loss of 1.8140  and target price of 1.7930

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