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FxWirePro:EUR/NZD attracts selling interest, could be on verge of a bigger drop

• EUR/NZD declined on Friday as dovish comments from the European Central Bank (ECB) weighed on Euro.

 • ECB ‘s Lagarde said on Thursday the  said hardest and worst bit  regarding inflation was likely over and that interest rates would be cut if inflation falls to the 2% level ,pushing back on expectations.

• The ECB acknowledged in its Economic Bulletin that the eurozone was experiencing a technical recession, with a soft landing scenario virtually certain.

• Technical signals show the pair could lose more ground as RSI is at 46 bearish, and 9, 11,21 DMA’s are trending south.

• Immediate resistance is located at 1.7639 (38.2%fib), any close above will push the pair towards 1.7677(Higher BB).

• Immediate support is seen at 1.7481 (23.6% fib) and break below could take the pair towards 1.7380 (Lower BB).

Recommendation: Good to sell round 1.7540, with stop loss of 1.7700 and target price of 1.7460

 

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