• EUR/NZD initially dipped on Wednesday but recovered some ground as investors digested US inflation data.
• U.S. consumer prices were unexpectedly unchanged in May as cheaper gasoline and other goods offset higher costs for rental housing.
• The data prompted financial markets to boost the probability that the U.S. central bank would cut rates in September as well as in December.
• Technical lean bearish, RSI is lower at 33, momentum studies, 9, 11 DMAs falling southwards.
• Immediate resistance is located at 1.7544( 38.2% fib), any close above will push the pair towards 1.7641( 50% fib)
• Support is seen at 1.7421(23.6%fib) and break below could take the pair towards 1.7375 (Dec 23rd 2023 low).
Recommendation: Good to sell around 1.7490, with stop loss of 1.7560 and target price of 1.7400
