• EUR/NZD dipped on Monday as euro attracted seller after comments from ECB President Christine Lagarde .
•ECB President Christine Lagarde said inflation is likely to moderate in 2022 and that conditions for a 2022 rate hike are unlikely to be met , resulting in softer euro zone rates and Euribor price gains.
• EUR/NZD fell to test support at 1.6128 (23.6%fib). A break and daily close below 1.6128 (23.6%fib) will accelerate further downtrend.
• Technical signals show the pair could lose more ground in the short-term as RSI is at 40 bearish, daily momentum studies 5, 9 and 11 DMAs are trending down.
• Immediate resistance is located at 1.6208 (14DMA), any close above will push the pair towards 1.6244 (38.2%fib).
• Strong support is seen at 1.6128 (23.6%fib) and break below could take the pair towards 1.6887 (50% fib ).
Recommendation: Good to sell around 1.6150, with stop loss of 1.6230 and target price of 1.6080
