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FxWirePro :EUR/NZD set for bigger drop, but close below key fibo needed

• EUR/NZD declined  on Wednesday as euro attracted sellers on dovish ECB expectations .

• Markets ignored positive   German investor morale which came  positive for first time since Ukraine war.

• At GMT 15:45, the pair was trading down 0.32 percent  at 1.6717 after reaching daily low at 1.6670.

• Technicals are favouring bullish sentiment as RSI is down at 44 and the pair is trading below 5& 9-DMAs. 

• Immediate resistance is located at 1.6776(50% fib), any close above will push the pair towards 1.6850(14DMA).

• Strong support is seen at 1.6670 (38.2% fib) and break below could take the pair towards 1.6624 (Ichimoku Cloud Base ).

Recommendation: Good to sell  around 1.6720, with stop loss of 1.6820 and target price of 1.6640
 

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