• 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
