• EUR/NZD declined on Thursday as hawkish outlook for New Zealand rates boosted kiwi dollar against euro.
• The New Zealand dollar has been best performing G10 currency overnight following the RBNZ’s hawkish policy update as RBNZ delivered a larger 75bps rate hike.
• A close below 1.6516(38.2%fib), would add to pairs bearish structure, opening the way towards 1.6400 level.
• Technical signals are bearish as RSI is heading down at 34, daily momentum studies 5, 9 and 11 DMAs are trending down.
• Strong resistance is located at 1.6718 (50%fib), any close above will push the pair towards 1.6810(11DMA).
• Strong support is seen at 1.6583 (Daily low)and break below could take the pair towards 1.6516(38.2%fib).
Recommendation: Good to sell around 1.6620, with stop loss of 1.6720 and target price of 1.6530.
