• EUR/NZD declined on Tuesday as investors moved towards riskier assets like kiwi dollar on hopes China would reopen from COVID shutdowns.
• Risk appetite had worsened on Monday after protestors and police clashed over the stringent COVID restrictions.
• At GMT 16:52, the pair was trading down 0.39 percent at 1.6706 after reaching daily high at 1.6606.
• 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 1.6779(38.2%fib), any close above will push the pair towards 1.6822(21DMA).
• Immediate support is seen at 1.6588 (38.2% fib) and break below could take the pair towards 1.6484(Sep 13th low).
Recommendation: Good to sell round 1.6710, with stop loss of 1.6790 and target price of 1.6630
