• EUR/NZD initially dipped on Monday but recovered some ground as the pair struggled for direction amid Euro-zone recession fears and anticipated ECB hikes.
• ECB is expected to hike interest rates by another quarter percentage point on Thursday to tame stubborn inflation.
• A close below 38.2%fib, would add to pair’s bearish structure, opening the way for 1.7520 level
• From a technical viewpoint, RSI is strongly bullish at 49, daily momentum studies, 5, 10 and 11 daily MAs are pointing lower.
• Immediate resistance is located at 1.7602 (50%fib), any close above will push the pair towards 1.7620(9DMA).
• Immediate support is seen at 1.7517 (38.2%fib) and break below could take the pair towards 1.7420 (May 15th low).
Recommendation: Good to sell around 1.7600, with stop loss of 1.7680 and target price of 1.7520
