FxWirePro: EUR/NZD recovery facing a steep rock, likely to falter

• EUR/NZD strengthened on Tuesday as optimism about a global economic recovery supported euro.

• EUR/NZD hit a high of 1.6776  but stopped short of trendline resistance. Very little pull back seen, the pair was last trading around 1.6767 in US session.

•Despite today gains the cross pair is unlikey to gain further  significant ground as trade flow volumes remain relatively light ahead of Fed meeting.

• Technical signals are bearish as RSI is at 49, daily momentum studies  11,14 and 21 DMAs are trending down. 

• Immediate resistance is located at 1.6805 ( 38.2%fib), any close above will push the pair towards 1.6839 (100DMA).

• Support is seen at 1.6672(23.6% fib ) and break below could take the pair towards 1.6620 (Lower BB).

Recommendation: Good to sell  around 1.6780, with stop loss of 1.6900 and target price of 1.6680.