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FxWirePro:EUR/NZD moves lower after RBNZ ends bond purchases,vulnerable to more downside

• 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
 

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