• EUR/NZD initially dipped on Monday but recovered some ground as sellers trimmed some short positions ahead of U.S. CPI data.
•All eyes are on U.S. CPI data due at 8:30 a.m. ET on Tuesday, expected to have climbed 0.4% in January.
• A close below support at 38.2%fib will give further momentum to bears, opening the way for a run towards 1.6760 level.
•Technicals are favouring bearish sentiment as RSI is falling and the pair is trading below 5,9 & 21-DMAs.
• Immediate resistance is located at 1.6889 (14DMA), any close above will push the pair towards 1.6915 (50%fib).
• Immediate support is seen at 1.6829 (38.2%fib) and break below could take the pair towards 1.6760 (Feb 2rd low).
Recommendation: Good to sell round 1.6870, with stop loss of 1.6950 and target price of 1.6800
