• EUR/NZD initially strengthened on Wednesday but gave up ground as investors scaled back ECB rate-hike bets.
•European Central Bank President Lagarde said the bank was "very unlikely" to raise rates in 2022 , a view echoed by ECB member Francois Villeroy de Galhau .
•Money markets trimmed expected H2 2022 ECB rate hikes back to roughly one 10bp rise from two earlier this week.
•EUR/NZD initially gained but found seller at 1.6299. A break and daily close below 1.6190 (38.2%fib) will accelerate downside further.
•Technical signals are bearish as RSI is at 34 bullish, daily momentum studies 5, 9 and 11 DMAs are trending down.
•Immediate resistance is located at 1.6279 (50%fib), any close above will push the pair towards 1.6373 (61.8%fib).
•Strong support is seen at 1.6190 (38.2%fib) and break below could take the pair towards 1.6082(23.6% fib )
Recommendation: Good to sell around 1.6220, with stop loss of 1.6320 and target price of 1.6150
