• EUR/NZD declined on Wednesday as worries that a new variant of the virus could lead extended lockdowns in Eurozone weighed on euro.
• The EUR/NZD has corrected lower from high at 1.2349 reached on Jan 20th.
The inability to maintain upward momentum suggests the EUR/NZD has more downside.
• Technicals leans bearish as RSI is at 43 bullish, and 5, 9,11 DMA’s are trending south.
• Immediate resistance is located at 1.6931 (5 DMA), any close above will push the pair towards 1.6984 (38.2 fib).
• Immediate support is seen at 1.6866 (23.6% fib) and break below could take the pair towards 1.6771 (Lower BB).
Recommendation: Good to sell around 1.6900, with stop loss of 1.7600 and target price of 1.6800
