• EUR/NZD declined on Wednesday as kiwi dollar rose across the board after RBNZ struck a surprisingly hawkish note by halting its bond buying stimulus programme.
• RBNZ announced at the board meeting onWednesday to halt additional asset purchases under the Large Scale Asset Purchase (LSAP) program by 23 July 2021.
• Todays sharp drop has put EUR/NZD back below 38.2%fib and has put the 23.6%fib at 1.6782 back in play.
• Technical signals show the pair could lose more ground as RSI is at 44 bearish, and 9, 11,21 DMA’s are trending south.
• Immediate resistance is located at 1.6846(38.2%fib), any close above will push the pair towards 1.6895 (50%fib).
• Immediate support is seen at 1.6782 (23.6%fib) and break below could take the pair towards 1.6754 (7th July low).
Recommendation: Good to sell round 1.6830, with stop loss of 1.6900 and target price of 1.6770
