• EUR/NZD declined on Wednesday as risk sentiment flowed back into the market, pushing oil prices and stocks higher.
• Risk appetite has improved since Monday, when markets were rattled by restrictions relating to the spread of Omicron.
• Any upside correction is likely to be temporary as barrier at 1.6674 (38.2%fib)is set to restrict higher move.
• Technical signals show the pair could gain more ground as RSI is falling, and 9, 11,21 DMA’s are trending south.
• Immediate resistance is located at 1.6642 (20 DMA), any close above will push the pair towards 1.6674 (38.2%fib).
• Immediate support is seen at 1.600 (23.6%fib) and break below could take the pair towards 1.6532(Lower BB).
Recommendation: Good to sell round 1.6620, with stop loss of 1.6700 and target price of 1.6530
