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FxWirePro:EUR/NZD capped by the 38.2%fib, good to sell on rally

• 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.
 

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