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FxWirePro: EUR/NZD heads deeper into bear territory, 1.6205 a key barrier

• EUR/NZD  declined on Tuesday as euro attracted seller as energy supply problems got worse for Europe.

• Gazprom announcement that gas flows through the NordStream 1 pipeline will be cut further to just 20% of capacity from Wednesday, having already lowered them to 40% last month 

• EUR/NZD fell further on bad news on the energy supply front. A break under 1.6205 (23.6% fib) would unmask 1.6100 level in the short term.

• Technical signals are bearish as RSI is at 34, daily momentum studies  5, 9 and 10 DMAs are trending down. 

• Immediate resistance is located at 1.6317 ( 5 DMA), any close above will push the pair towards 1.6407(38.2% fib)

• Support is seen at 1.6205 (23.6% fib ) and break below could take the pair towards 1.6143 (Lower BB).

  Recommendation: Good to sell on rally around 1.6260, with stop loss of 1.6320 and target price of 1.6120.
 

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