• EUR/NZD declined on Friday as higher commodity prices and lowered expectations of European economic growth weighed on the pair.
• Euro declined as investors worried that higher commodity prices will dent growth in the European Union.
• Selling pressure will remain in the short-term, only a move above 1.6032 (50%fib)strong resistance will shift the bias higher.
• Technical signals show the pair could lose more ground as RSI is at 16 bearish, and 5, 11,21 DMA’s are trending south.
• Immediate resistance is located at 1.6032 (50%fib), any close above will push the pair towards 1.6149(61.8%fib).
• Immediate support is seen at 1.7575 (38.2%fib) and break below could take the pair towards 1.5705 (23.6% fib).
Recommendation: Good to sell round 1.5950, with stop loss of 1.6100 and target price of 1.5880
