• EUR/NZD declined on Wednesday as euro weakened on growth concerns after Russia cut off gas supplies to two eastern European nations.
• Russia halted gas supplies to Bulgaria and Poland on Wednesday for rejecting its demand for payment in roubles, taking direct aim at European economies.
•The pair reaches 1.6088 from 1.6228. 1.6088 is the lowest level since 22nd April.The inability to maintain upward momentum suggests the EUR/NZD has more downside.
• Technicals leans bearish as RSI is at 49 bullish, and 5, 9,11 DMA’s are trending south.
• Immediate resistance is located at 1.6187 (5 DMA), any close above will push the pair towards 1.6293 (38.2 fib).
• Immediate support is seen at 1.6064 (23.6% fib) and break below could take the pair towards 1.5916(April 21st low).
Recommendation: Good to sell around 1.6130, with stop loss of 1.6230 and target price of 1.6040
