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

• EUR/NZD declined on Tuesday as higher oil prices boosted commodity linked kiwi dollar .

• The euro   erased Monday’s gains against the kiwi dollar , the pair was last down  at 0.2 % at  1.6771 .

• Todays drop has put EUR/NZD back below 11DMA and has put the (38.2%fib 1.6758) back in play

• Technical signals show the pair could lose more ground as RSI is at 47 bearish, and 9, 11,21 DMA’s are trending south.

• Immediate resistance is located at 1.6858 (11DMA), any close above will push the pair towards 1.6884(50%fib).

• Immediate support is seen at 1.6758(38.2%fib) and break below could take the pair towards 1.6705 (Lower BB).

Recommendation: Good to sell round 1.6780, with stop loss of 1.6880 and target price of 1.6700

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