FxWirePro: EUR/NZD drop accelerates ahead of the RBNZ rate decision

• EUR/NZD declined   on Tuesday as kiwi dollar kept climbing ahead  of the highly anticipated Reserve Bank of New Zealand (RBNZ) interest rate announcement.

•The Reserve Bank of New Zealand (RBNZ) holds its policy meeting on Wednesday and is considered certain to hold rates at 5.5% given recent softness in inflation and employment.

• The pair is currently approaching resistance at 23.6%fib. A break and daily below above will accelerate further gains towards 1.7850 level.

• Technical signals show the pair could gain more ground in the short-term as RSI is at 42 bullish, daily momentum studies  5, 9 and 11 DMAs are trending  down. 

• Immediate resistance is located at 1.7990(38.2%fib), any close above will push the pair towards 1.8050(Nov 27th high).

• Strong support is seen at 1.7866(23.6%fib) and break below could take the pair towards 1.7862 (Lower BB ).

Recommendation: Good to sell around 1.7950 with stop loss of 1.8080  and target price of 1.7850