• EUR/NZD declined on Thursday as expectations RBNZ hike interest rates in October weighed on the pair.
• New Zealand COVID-19 cases dropped on Thursday, further boosting rate hike chances.
• Recent drop has put EUR/NZD back below 38.2%fib and has put the (23.6%fib) 1.6658 back in play
• Technical signals show the pair could lose more ground as RSI is at 38 bearish, and 9, 11,21 DMA’s are trending south.
• Immediate resistance is located at 1.6741 (38.2%fib), any close above will push the pair towards 1.6798 (9 DMA).
• Immediate support is seen at 1.6658(23.6%fib) and break below could take the pair towards 1.6600 (Psychological level).
Recommendation: Good to sell round 1.6700, with stop loss of 1.6780 and target price of 1.6640
