• EUR/NZD declined on Wednesday as kiwi dollar rose after Reserve Bank of New Zealand (RBNZ) delivered record rate hike.
• The Reserve Bank of New Zealand lifted the RBNZ’s policy rate up to 4.25% which is the highest rate amongst G10 central banks.
• Technical signals show the pair could lose more ground as RSI is at 37, and 5, 9,11 DMA’s are trending south.
• Immediate resistance is located at 1.6771(5DMA), any close above will push the pair towards 1.6802 (50%fib).
• Immediate support is seen at 1.6630 (50%fib) and break below could take the pair towards 1.6575( Sep 15th low).
Recommendation: Good to sell round 1.6670, with stop loss of 1.6750 and target price of 1.6550
