• EUR/NZD declined on Wednesday as investors took short position ahead of Thursdays European Central Bank policy meeting.
• No change is expected to the bank’s policy, its forecasts and messaging around its willingness to deploy bond purchases will be closely watched.
• The pair traded as high as 1.7814 before easing to trade around 1.7695 in late US session.
• Technical signals show the pair could lose more ground as RSI is at 47 bearish, and 9, 11,21 DMA’s are trending south.
• Immediate resistance is located at 1.7726 (50%fib), any close above will push the pair towards 1.7819 (Daily high).
• Immediate support is seen at 1.7654 (50DMA) and break below could take the pair towards 1.7595 (38.2% fib).
Recommendation: Good to sell round 1.7750, with stop loss of 1.7880 and target price of 1.7650
