• EUR/NZD declined on Wednesday after New Zealand dollar rose higher after strong jobs data.
• New Zealand jobless rate fell sharply in Q2, cemented rate hike expectations. Markets price in a 100% chance of 25 bps hike to 0.5% in August.
• EUR/ NZD fell to 1.6745 close to the 38.2% fib. A break under 38.2% fib would unmask 1.6670 level in the short term.
• Technical signals are bearish as RSI is at 42, daily momentum studies 5, 9 and 10 DMAs are trending down.
• Strong resistance is located at 1.6792( 38.2%fib), any close above will push the pair towards 1.6849(61.8%fib)
• Immediate support is at 1.6739 (38.2% fib) and break below could take the pair towards 1.6672(23.6%fib).
Recommendation: Good to sell around 1.6790 , with stop loss of 1.6850 and target price of 1.6690
