• EUR/NZD slumped on Tuesday as euro was weighed down against the New Zealand dollar after RBNZ projected that it would hike interest rates as early as Sept next year.
• The Reserve Bank of New Zealand kept interest rates at 0.25% as anticipated however amazed many by projecting a rate of 0.49% by September 2022, and not much less than 1.78% by June 2024.
• EUR/ NZD fell to 1.6712 close to the 23.6% fib. A break under 23.6% fib would unmask 1.6650 level in the short term.
• Technical signals are bearish as RSI is at 45, daily momentum studies 5, 9 and 10 DMAs are trending down.
• Strong resistance is located at 1.6771( 38.2%fib), any close above will push the pair towards 1.6796 (21DMA)
• Immediate support is at 1.6702 (23.6% fib) and break below could take the pair towards 1.6655 (Ichimoku cloudbase).
Recommendation: Good to sell around 1.6760 , with stop loss of 1.6850 and target price of 1.6670
