• EUR/NZD dipped on Tuesday as euro attracted sellers on potential rise in geopolitical tensions.
•The euro declined against kiwi dollar on reports that Russian missiles hit Poland raised fears about greater geopolitical risks in the region.
• Today’s drop passed through the 38.2%fib fibonacci retrace point at 1.6844 and now eyes the next support at 1.6710
• Technicals are favouring bearish sentiment as RSI is at 41 and the pair is trading below 5,10 & 11-DMAs.
•, Immediate resistance is located at 1.6838 (38.2%fib), any close above will push the pair towards 1.6877 (5DMA).
• Strong support is seen at 1.6710 (Ichimoku Cloud Base) and break below could take the pair towards 1.6066( 23.6%fib).
Recommendation: Good to sell on rallies around 1.6810, with stop loss of 1.6950 and target price of 1.6710
