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FxWirePro: EUR/NZD downside pressure builds, key support level in focus

• EUR/NZD declined   on Friday    as buoyed risk sentiment and expectation that RBNZ will cut rates this year boosted kiwi dollar.

•The RBNZ has kept the cash rate unchanged at 5% since July and hasn’t signaled plans to shift its policy and lower rates. The central bank meets next on May 22nd and is expected to hold rates.

• The pair  picked up  downside momentum and is approaching 38.2 % fib support. A close below will opens up  1.7800 level.

•   Immediate resistance is located at 1.7897(50 %fib), any close above will push the pair towards 1.7962(61.8%fib).

• Strong support is seen at 1.7840 (38.2 % fib) and break below could take the pair towards 1.7760 ( 23.6%fib).

Recommendation: Good to sell around 1.7890 , with stop loss of 1.7990 and target price of 1.7800

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