• EUR/NZD declined on Tuesday as euro was weighed on inflation concerns as ECB and Fed expectations diverge.
• EUR/NZD drop is likely to continue as investors move towards a less accommodating Fed, while the ECB, President Christine Lagarde announced on Monday, ECB could potentially expand its accommodating policy.
• At GMT 16:34, the pair was trading down 0.14 percent at 1.6949 after reaching daily low at 1.6939
• The cross pair has been on a bearish trajectory since 12July, A close below (30 DMA )would strengthen the pairs bearsih hold further.
• Immediate resistance is located at 1.6798( 50% fib), any close above will push the pair towards 1.5550 (61.8%fib)
• Support is seen at 1.6940 (30DMA ) and break below could take the pair towards 1.6873(38.2%fib).
Recommendation: Good to sell on rally around 1.6960, with stop loss of 1.7000 and target price of 1.6900.
