• EUR/NZD declined on Wednesday as euro was weighed down against the New Zealand as market expects ECB to remain dovish on Thursday.
• The European Central Bank is all but certain to keep policy unchanged on Thursday and push back against growing expectations for an interest rate hike next year.
• EUR/ NZD fell to close to the 23.6% fib. A break under 23.6% fib would unmask 1.6100 level in the short term.
•Technical signals are bearish as RSI is at 32, daily momentum studies 5, 9 and 10 DMAs are trending down.
• Strong resistance is located at 1.6226( 9DMA), any close above will push the pair towards 1.6270 (38.2%fib)
• Immediate support is at 1.6156 (23.6% fib) and break below could take the pair towards 1.6100 (Psychological level).
Recommendation: Good to sell around 1.6200 with stop loss of 1.6300 and target price of 1.6100
