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FxWirePro:EUR/NZD extends drop, critical support lies ahead

• EUR/NZD declined on Thursday as traders remained short as investors were  concerned about the Eurozone’s energy crisis. 

• Selling pressure will remain in the short-term, only a move above 1.6370 ( 38.2 % fib) strong resistance  will shift the bias higher.

• Technical signals show the pair could lose more ground as RSI is at 33 bearish, and 9, 11,21 DMA’s are trending south. 

• Immediate resistance is located at 1.6242 (5DMA), any close above will push the pair towards 1.6370(38.2% fib).

• Immediate support is seen at 1.6168 (23.6% fib) and break below could take the pair towards 1.6120 (Lower BB).

Recommendation: Good to sell round 1.6200, with stop loss of 1.6360 and target price of 1.6130

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