• EUR/NZD declined on Tuesday as improving commodity prices and comments by RBNZ assistant governor Christian Hawkesby supported kiwi dollar.
• RBNZ assistant governor Christian Hawkesby said on Tuesday that policy decisions won’t be tightly linked to lockdowns.
• The current downward pressure is deemed intact as long as the pair does not move above 23.6%fib.
• Technical signals show the pair could lose more ground as RSI is at 49 bearish, and 9, 11,21 DMA’s are trending south.
• Immediate resistance is located at 1.6933 (38.2%fib), any close above will push the pair towards 1.6950 (9 DMA).
• Immediate support is seen at 1.6885 (50%fib) and break below could take the pair towards 1.6842 (61.8% fib).
Recommendation: Good to sell round 1.6920, with stop loss of 1.6990 and target price of 1.6860
