• EUR/NZD initially gained on Monday but lost most of the ground as markets were on the defensive as caution set in ahead of central bank meetings and big-ticket U.S. economic data.
• The pair’s recovery stalled after finding resistance at 1.5633(38.2%fib). Repeated failures at 1.6812( 38.2%fib)a warning for EUR/NZD bulls as rally tires.
• Technical signals are trending down as RSI is bearish at 49, daily momentum studies 5, 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.6812( 38.2%fib), any close above will push the pair towards 1.5667 (100DMA)
• Support is seen at 1.6706 (50DMA) and break below could take the pair towards 1.6682 (23.6%fib).
Recommendation: Good to sell around 1.6750, with stop loss of 1.6850 and target price of 1.6680.
