• EUR/NZD declined on Tuesday as a robust start to the U.S. earnings season and hopes China will be able to contain its property market malaise boosted demand for New Zealand dollar.
•New Zealand`s dollar also gained following Monday data which showed the fastest consumer-price inflation in more than a decade.
• EUR/NZD dips further below 1.6311 (38.2% fib). A break below strong support zone at 1.6237 (23.6% fib) cannot be ruled out.
• Technical signals indicate bearish momentum, as RSI is at 28, daily momentum studies 5, 9 and 11 DMAs are trending down.
• Immediate resistance is located at 1.6311 (38.2% fib), any close above will push the pair towards 1.6353 (5DMA).
• Strong support is seen at 1.6237 (23.6% fib) and break below could take the pair towards 1.6200(Psychological level)
Recommendation: Good to sell around 1.6270, with stop loss of 1.6370 and target price of 1.6200
