• EUR/NZD declined sharply on Friday after U.S. Federal Reserve Chair Jerome Powell calmed market expectations for imminent stimulus tapering.
• Investor appetite to look for returns outside the U.S. currency helped the risk-sensitive kiwi dollar higher.
• The pair extended its drop to hit 1.6809, a one week low, it was last down 0.58% on the day.
• Technical signals show the pair could lose more ground in the short-term as RSI is at 45 bearish, daily momentum studies 9, 10 and 11 DMAs are trending down.
• Immediate resistance is located at 1.6867 ( 5 DMA), any close above will push the pair towards 1.6927 (61.8%fib).
• Strong support is seen at 1.6797 (38.2%fib) and break below could take the pair towards 1.6717 (23.6%fib).
Recommendation: Good to sell on rallies around 1.6820 with stop loss of 1.6880 and target price of 1.6760.
