• EUR/NZD initially dipped on Monday but recovered most of the ground as investors awaited upcoming ECB meeting on Thursday.
• The ECB projections will attract scrutiny as euro-zone inflation was just above the bank's target in May, below but close to 2%, while other key economic data suggests that growth is accelerating.
• Bears are waiting for a daily close under 1.6813(50%fib), a break will increase the odds of a deeper fall to the1.6770 fibonacci level.
• Technical signals show the pair could lose more ground as RSI is pointing southwards, and 9, 11,21 DMA’s are trending down.
• Immediate resistance is located at 1.6872 (5DMA), any close above will push the pair towards 1.6923(61.8%fib).
• Immediate support is seen at 1.6813(50%fib) and break below could take the pair towards 1.6770(38.2% fib).
Recommendation: Good to sell round 1.6870, with stop loss of 1.6970 and target price of 1.6800
