• EUR/NZD held near one month low on Friday as investors fretted about an energy shock in Europe due to its dependence on Russian gas.
• EUR/NZD fell as low as 1.6394 before buyers returned and underpinned . Support at 1.6394 holding but break would accelerate further downside momentum.
• Technical signals are bearish as RSI is at 39, daily momentum studies 10,11 and 14 DMAs are trending down.
• Immediate resistance is located at 1.6566 ( 5DMA), any close above will push the pair towards 1.6586 (50% fib)
• Support is seen at 1.6394 (38.2% fib ) and break below could take the pair towards 1.6176 (23.6% fib).
Recommendation: Good to sell around 1.6450, with stop loss of 1.6570 and target price of 1.6380.
