• EUR/NZD initially gained on Thursday but gave up most of the ground as investors digested ECB rate decision.
• The European Central Bank went ahead with its first interest rate cut since 2019 on Thursday, keeping its word despite an increasingly uncertain inflation outlook.
• EUR/NZD hit daily high at 1.7631 initially but retreated to trade at 1.7559. The pair remains vulnerable, only a break and daily close above 1.7740(50% fib) will shift bias to the upside.
• Technical lean bearish, RSI is trending down , momentum studies, 9, 10,11 DMAs are trending southwards.
• Immediate resistance is located at 1.7643(38.2%fib), any close above will push the pair towards 1.7728(50%fib).
• Support is seen at 1.7530(23.6%fib) and break below could take the pair towards 1.7472(Lower BB).
Recommendation: Good to sell around 1.7570, with stop loss of 1.7700 and target price of 1.7500.
