• EUR/NZD declined on Wednesday as major shifts in trade flows and bond yields favoured the resource-heavy currencies like kiwi dollar
• Investors awaited New Zealand inflation print, another aggressive half-point hike could come RBNZ in May should inflation figures on Thursday prove as shocking as some expect.
• EUR/NZD dived below the 5 DMA and trades down to a 1.5921 low.
• Technical lean bearish, as RSI is turning lower at 48, momentum studies, 9, 11 DMAs falling southwards.
• Immediate resistance is located at 1.5978( 5 DMA), any close above will push the pair towards 1.6119 (38.2% fib)
• Support is seen at 1.5864(23.6%fib) and break below could take the pair towards 1.5696 (Lower BB).
Recommendation: Good to sell around 1.5950, with stop loss of 1.6100 and target price of 1.5880.
