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FxWirePro: EUR/NZD neutral in the near term, scope for downward resumption

• EUR/NZD dipped on Thursday as rise in commodity prices and slightly dovish ECB statement weighed on the pair.

• EUR/NZD  initially gained but found sellers at 1.6038. A break and daily close below 1.5737 (23.6%fib)  will accelerate further downtrend.

• Technical signals show the pair could gain more ground in the short-term as RSI is at 63  bullish, daily momentum studies  5, 9 and 11 DMAs are trending  up.

• Immediate resistance is located at 1.5869 (38.2%fib), any close above will push the pair towards 1.6168 ((50%fib).

• Strong support is seen at 1.5737 (23.6%fib) and break below could take the pair towards 1.5636 (Lower BB )

Recommendation: Good to sell around 1.5960 with stop loss of 1.6120 and target price of 1.5860

 

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