• EUR/NZD was little changed on Thursday as currency traders awaited European Central Bank meeting on Thursday.
• EUR/NZD is approaching to test support at 1.6560 (23.6%fib). A daily close above 1.6560 will accelerate further downside.
• The ECB meets on Thursday and is expected to keep policy on hold, there is a belief ECB will address rising yields in the euro area.
• Technical signals show the pair could lose more ground in the short-term as RSI is bearish, daily momentum studies 5 and 9 DMAs are trending down.
• Immediate resistance is located at 1.6643 (21DMA), any close above will push the pair towards 1.6713(38.2%fib).
• Strong support is seen 1.6560 (23.6%fib),a break below could take the pair towards 1.6426(Lower BB).
Recommendation: Good to sell around 1.6650, with stop loss of 1.6550 and target price of 1.6730
