• EUR/NZD initially gained on Tuesday but rally fizzled as investors awaited Federal Reserve chairman Jerome Powell’s testimony in Congress.
• The EUR/NZD has corrected lower from 1.6828 reached on Feb 12th 2021.The inability to maintain upward momentum suggests the EUR/NZD has more downside.
• Technicals leans bearish as RSI is at 31 bullish, and 5, 9,11 DMA’s are trending south.
• Immediate resistance is located at 1.6569 (5 DMA), any close above will push the pair towards 1.6787 (23.6%fib).
• Immediate support is seen at 1.6537 (Lower BB) and break below could take the pair towards 1.6500 (Psychological level).
Recommendation: Good to sell around 1.6600, with stop loss of 1.6730and target price of 1.6550
