• EUR/NZD recovered some ground on Tuesday as profit taking on shorts helped the pair recover some ground.
• EUR/NZD attracted sellers on Monday after ECB President Christine Lagarde reiterated her view that inflation will retreat next year and a rate hike would be counterproductive .
• Selling pressure will remain in the short-term, only a move above 1.6323(50%fib) strong resistance will shift the bias higher.
• Technical signals show the pair could lose more ground as RSI is at 43 bearish, and 9, 11,21 DMA’s are trending south.
• Immediate resistance is located at 1.6231 (38.2%fib), any close above will push the pair towards 1.6323(50%fib).
• Immediate support is seen at 1.6112 (23.6%fib) and break below could take the pair towards 1.6075 (Lower BB).
Recommendation: Good to sell round 1.6180, with stop loss of 1.6270 and target price of 1.6120
