• EUR/NZD declined on Thursday after data showed euro zone inflation eased by more than expected this month.
• The inflation rate in the 20 nations that use the euro currency decreased to 2.4% in November from 2.9% in October, falling considerably short of the anticipated decline to 2.7%.
• The pair extended its drop to hit 1.7664, a six week low, it was last down 0.78% on the day.
• Technical signals show the pair could lose more ground in the short-term as RSI is at 35 bearish, daily momentum studies 9, 10 and 11 DMAs are trending south.
• Immediate resistance is located at 1.7739 ( 38.2% fib), any close above will push the pair towards 1.7833 (50% fib)
• Support is seen at 1.7656 (Daily low) and break below could take the pair towards 1.7605 (23.6% fib).
Recommendation: Good to sell on rally around 1.7700, with stop loss of 1.7780 and target price of 1.7620
