• EUR/NZD initially dipped on Wednesday as dovish ECB comments and weaker German industrial orders data weighed on euro .
• Data showed a surprising decline in German industrial orders in October, down 3.7% month-on-month, reinforcing expectations of ECB rate cuts next year following a dovish shift from German ECB board member Isabel Schnabel on Tuesday.
• EUR/ NZD chart has taken a turn for the worse after todays drop.Overall risk growing for a bigger drop towards 1.7450.
• Technical signals show the pair could lose more ground as RSI has turned sharply lower, and 9, 11,21 DMA’s are trending south.
• Immediate resistance is located at 1.7585 (5DMA), any close above will push the pair towards 1.7621(38.2%fib).
• Immediate support is seen at 1.7475 (23.6%fib) and break below could take the pair towards 1.7412 (Jun 15th low).
Recommendation: Good to sell round 1.7510, with stop loss of 1.7670 and target price of 1.7440
