• 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.
