• EUR/NZD edged lower on Tuesday as rise in commodity prices boosted kiwi dollar against euro.
• Dip was shallow as buyers emerged near the 1.6400 level. A break and daily close below 1.6374 (38.2%fib) will accelerate further downtrend.
• Technical signals show the pair could lose more ground in the short-term as RSI is at 44 bearish, daily momentum studies 5, 9 and 11 DMAs are trending down.
• Immediate resistance is located at 1.648714DMA), any close above will push the pair towards 1.6535 (38.2%fib).
• Strong support is seen at 1.6374 (38.2%fib) and break below could take the pair towards 1.6300 (18th July low )
Recommendation: Good to sell around 1.6440, with stop loss of 1.6530 and target price of 1.6400
