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

• EUR/NZD fell below1.9700 level on Wednesday as increased risk-on sentiment boosted commodity linked  New Zealand dollar  

• The Reserve Bank of New Zealand recently kept its Official Cash Rate unchanged at 2.25% and reiterated that policy remains accommodative as inflation gradually moves toward the midpoint of its target range.

•Governor Anna Breman said that gradually improving economic conditions are expected to support stronger growth this year without triggering renewed inflationary pressures..

•  Money markets do not expect a rate hike from the Reserve Bank of New Zealand before late in the year.

 • The technical outlook remains bearish and points to eventual bigger gains, fourteen-day momentum is negative, reinforcing the scope for a bigger drop  

• Immediate resistance is located at 1.9740(38.2%fib), any close above will push the pair towards 1.9805(Higher BB)

• Support is seen at 1.9683(SMA 20) and break below could take the pair towards 1.9564(Lower BB)

Recommendation: Good to sell around 1.9700 with stop loss of 1.9800  and target price of 1.9620