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FxWirePro: EUR/NZD key support held, downside risk remains

• 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.

 

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