FxWirePro:EUR/NZD faces steeper downside risks, good to sell on rally

• EUR/NZD declined on Wednesday as widening disparity between the strength of U.S. and European pandemic recoveries weighed on euro.

•Euro weakness has been driven by the perception that the EU's vaccine response has been slower than the U.S. or the UK, as the coronavirus continues to spread across Europe .

• At GMT 15:00, the pair was trading down 0.26 percent  at 1.6696 after reaching daily high at 1.6757.

•Technical highlight downside risks for EUR/NZD , with momentum studies, 5, 10 and 21 DMAs tracking south.

• Immediate resistance is located at 1.6783 ( 23.6%fib), any close above will push the pair towards 1.6836 (11DMA).

• Strong support is seen at 1.6668 (Daily low) and break below could take the pair towards 1.6600 (Psychological level).

Recommendation: Good to sell around 1.6650, with stop loss of 1.6750 and target price of 1.6580