FxWirePro- Currency Strength Index (4- Hour chart)- Currency pairs to watch(EURUSD and AUDUSD) for the day
FxWirePro: EUR/NZD drifts lower , could be on verge of a bigger drop
• EUR/NZD dipped on Wednesday as rising recession fear in the euro zone led investors sell euro.
•ECB President Lagarde said the era of ultra-low inflation that preceded the pandemic is unlikely to return and central banks need to brace themselves for higher price growth expectations.
• The pair picked up downside momentum after Lagarde comments and is approaching 1.6687(38.2%fib). A close below will opens up 1.6650 level.
• Immediate resistance is located at 1.6786 (5DMA), any close above will push the pair towards 1.6920 (23.6%fib).
• Strong support is seen at 1.6687(38.2%fib) and break below could take the pair towards 1.6640 (21DMA )
Recommendation: Good to sell around 1.6775, with stop loss of 1.6850 and target price of 1.6660