• EUR/NZD declined on Wednesday as New Zealand dollar broadly firmed as RBNZ hiked rates as expected and signalled a more aggressive path forward.
• RBNZ raised its official cash rate by 25 basis points to 1.00%, as expected . However the central bank's decidedly hawkish tone and other aspects of the decision caught markets by surprise .
• EUR/NZD drops below the 5-DMA, slide halts at the 1.6656(23.6%fib),now eyes Jan 5th low at 1.6540.
• From a technical viewpoint, the moving averages are pointing downwards, while the RSI is strongly bearish at 40.
• Immediate resistance is located at 1.6780 (38.2%fib), any close above will push the pair towards 1.6869(50%fib).
• Strong support is seen at 1.6656(23.6%fib) and break below could take the pair towards 1.6540(5thth Jan low).
Recommendation: Good to sell below 1.6700, with stop loss of 1.6800 and target price of 1.6600
