FxWirePro: EUR/NZD pauses downtrend and consolidates,downside risk remains

• EUR/NZD recovered some ground on Thursday as  positive Italian political developments offset European pandemic recoveries worries.

• Though further downside for the pair is likely, news that former ECB President Mario Draghi would try to form a new Italian government helped EUR/NZD recover towards 1.6720.

• At GMT 15:00, the pair was trading down 0.26 percent  at 1.6696 after reaching daily high at 1.6757.

•Techs are  trending lower with the 5, 10 and 21-day MAs in bearish alignment.

• Immediate resistance is located at 1.6783 ( 23.6%fib), any close above will push the pair towards 1.6836 (11DMA).

• Strong support is seen at 1.6636 (Daily low) and break below could take the pair towards 1.6600 (Psychological level).

Recommendation: Good to sell around 1.6720, with stop loss of 1.6900 and target price of 1.6600