• EUR/NZD traded in tight range on Wednesday as market remained in holding pattern ahead of French snap election and US PCE data at the end of the week.
• President Emmanuel Macron's surprise snap election has impacted euro as strong polling for far-right and left-wing parties heightens concerns about fiscal sustainability.
• Friday's PCE inflation figures are likely to outweigh other data that come before it, though initial jobless claims will draw close scrutiny as traders watch for signs of more softening in the labor market.
• Technicals are favouring bearish sentiment as RSI is at 47 and the pair is trading below 11 & 21-DMAs.
• Immediate resistance is located at 1.7591 (38.2%fib), any close above will push the pair towards 1.7691 (50%fib).
• Strong support is seen at 1.7480 (23.6%fib) and break below could take the pair towards 1.7431(June 21st low ).
Recommendation: Good to sell around 1.7570, with stop loss of 1.7680 and target price of 1.7500
