• EUR/NZD declined on Wednesday as widening divide between European Central Bank and Reserve Bank of New Zealand policy attracted seller.
• The ECB is pushing back against tighter monetary policy, hoping inflation that has soared far beyond target will recede.
• At GMT 17:15, the pair was trading down 0.31 percent at $1.6554.
• EUR/NZD rally stalled at 38.2%fib and pressure now shifts to the downside.
• Immediate resistance is located at 1.6621 ( 38.2%fib), any close above will push the pair towards 1.6737 (23.6%fib)
• Support is seen at 1.6526(50 %fib ) and break below could take the pair towards 1.6429 (61.8%fib).
Recommendation: Good to sell on rally around 1.6560, with stop loss of 1.6700 and target price of 1.6470.
