• EUR/NZD dipped on Wednesday as euro weakened ahead of a crucial European Central Bank policy decision on Thursday.
• The ECB is set to deliver its first rate hike in more than a decade on Thursday against a difficult economic backdrop exacerbated by the war in Ukraine.
• At GMT 19:12, the pair was trading down 0.46 percent at 1.6346.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 38 bearish, daily momentum studies 5, 9 and 11 DMAs are trending down.
• Immediate resistance is located at 1.6405 (5DMA), any close above will push the pair towards 1.6453 (50%fib).
• Strong support is seen at 1.6286 (38.2%fib) and break below could take the pair towards 1.6206 (Lower BB )
Recommendation: Good to sell around 1.6360, with stop loss of 1.6490 and target price of 1.6290
