• EUR/NZD declined on Friday as increased risk appetite put the New Zealand dollar in demand.
• Risk appetite has largely remained intact this week as the reopening of several global economies has supported economic recovery hopes.
• The is pair heading towards 1.7200 level, as near term direction of the pair is likely to be driven by current price action.
.• Technical signals show the pair could lose more ground in the short-term as RSI is at 35 daily momentum studies 5, 10 and 21 DMAs are trending down.
• On the upside, Immediate resistance is located at 1.7533 (5 DMA), any close above will push the pair towards 1.7653 (9 DMA).
• On the downside, strong support is seen at 1.7339 (Daily low) and break below could take the pair towards 1.7303 (300 DMA ).
Recommendation: Good to sell around 1.7370, with stop loss of 1.7500 and target price of 1.7200
