• EUR/NZD initially dipped on Monday after hotter than expected NZ CPI data but gave recovered ground as investors booked profits on shorts.
•After hitting lowest since Feb 2nd 2021, pair has recovered to 1.6384. A close below 1.6320 (23.6%fib )is likely to clear assault on 1.6294 level.
• Technical signals are bearish as RSI is at 32, daily momentum studies 5, 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.6453 (38.2%fib), any close above will push the pair towards 1.6504 (5DMA)
• Strong support is seen at 1.6320 (23.6%fib ) and break below could take the pair towards 1.6294(March 1st2 2019 low).
Recommendation: Good to sell around 1.6420, with stop loss of 1.6540 and target price of 1.6310
