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FxWirePro: EUR/NZD shorts maintain advantage after US inflation data

• 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
 

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