• EUR/NZD declined sharply on Friday as demand for risk sensitive kiwi dollar increased after slower-than-expected U.S. jobs data.
• Investor appetite to look for returns outside the U.S. currency helped the risk-sensitive kiwi dollar gain against euro.
• The pair extended its drop to hit 1.5677, lowest since 22nd March, it was last down 0.58% on the day.
• Technical signals show the pair could lose more ground in the short-term as RSI is at 34 bearish, daily momentum studies 9, 10 and 11 DMAs are trending down.
• Immediate resistance is located at 1.6647 (50%fib), any close above will push the pair towards 1.6725 (61.8%fib).
• Strong support is seen at 1.6577 (38.2%fib) and break below could take the pair towards 1.6542 (Lower BB).
Recommendation: Good to sell on rallies around 1.6610 with stop loss of 1.6720 and target price of 1.6550.
