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FxWirePro:EUR/NZD downside pressure builds, key support level in focus

• EUR/NZD declined on Friday  as  pair attracted seller after ECB policymaker  hinted  slower rate hikes.

• Dutch Central Bank President Klaas Knot said on Friday,ECB may slow the pace of interest rate hikes but should soon start running down its massive government debt holdings.

• EUR/NZD drops below the 5-DMA  , slide halts at the 1.6916 (50%fib),break below will accelerate towards  1.6650 level.

•  Technical signals are bearish as RSI is heading down  at 44, daily momentum studies  5, 9 and 1 DMAs are trending down. 

• Immediate resistance is located at 1.6867 (5 DMA), any close above will push the pair towards 1.6916(50%fib)

• Strong support is seen at 1.6743 (38.2%fib ) and break below could take the pair towards 1.6650(Lower BB).

Recommendation: Good to sell on rally around 1.6770, with stop loss of 1.6860 and target price of 1.6700.

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