• EUR/NZD declined on Tuesday as investors looked past worries about China's COVID flare-ups, boosting demand for more risky currencies like Kiwi dollar.
• Kiwi dollar also strengthened as traders braced for New Zealand's central bank to deliver its biggest ever rate hike this week as it continues efforts to temper inflation.
• EUR/NZD probed support zone 1.6706, and recovered towards 1.6750, Break lower at 1.6706 risks run towards 1.6600 level.
• Technical signals show the pair could lose more ground as RSI is at 40 bearish, and 9, 11,21 DMA’s are trending south.
• Immediate resistance is located at 1.6827 (5DMA), any close above will push the pair towards 1.6888(50%fib).
• Immediate support is seen at 1.6706 (38.2%fib) and break below could take the pair towards 1.6593 (Lower BB).
Recommendation: Good to sell round 1.6760, with stop loss of 1.6810 and target price of 1.6700
