• EUR/NZD initially strengthened on Wednesday but gave back half of gains as risk aversion and Eurozone data miss weighed on euro.
• Weaker-than-forecast euro zone retail sales and a 7.7% drop in German industrial orders added to concerns about slowing growth teamed with a 13-year high in inflation .
• EUR/NZD remains vulnerable, only a break and daily close above 1.6803 (50% fib) will shift bias to the upside.
• Technical signals show the pair could lose more ground as RSI is at 43 bearish, and 9, 11,21 DMA’s are trending south.
• Immediate resistance is located at 1.6720 (38.2%fib), any close above will push the pair towards 1.6761(50 DMA).
• Strong support is seen at 1.6620 (23.6%fib) and break below could take the pair towards 1.6533 (Lower BB).
Recommendation: Good to sell round 1.6720, with stop loss of 1.6800 and target price of 1.6660
