• EUR/NZD declined on Wednesday as commodity-linked currencies strengthened as the impact of an escalating conflict in Ukraine kept prices surging for oil and other raw materials.
•Crude oil futures surged above $110 a barrel, and wheat and aluminum prices jumped, with Western sanctions on Russia over its invasion of Ukraine seen disrupting commodities supply.
• Any upside correction is likely to be temporary as barrier at 1.6563 (Ichimoku cloud base) is set to restrict higher move.
• Technical signals show the pair could gain more ground as RSI is at 25 bearish, and 9, 11,21 DMA’s are trending south.
• Immediate resistance is located at 1.6476 (Daily high), any close above will push the pair towards 1.6496 (5 DMA).
• Immediate support is seen at 1.6351 (25th Nov 2021 low) and break below could take the pair towards 1.6257 (25th Nov 2021 low).
Recommendation: Good to sell round 1.6390, with stop loss of 1.6500 and target price of 1.6300
