• EUR/NZD initially dipped on Wednesday butv recovered some ground after RBNZ kept rates on hold but warned hikes may not be over.
• The Reserve Bank of New Zealand kept the official cash rate (OCR) at 5.5% as expected, but the hawkish tone of the statement surprised many, pushing the New Zealand dollar higher.
• EUR/ NZD chart has taken a turn for the worse after todays drop.Overall risk growing for a bigger drop towards 1.7750.
• Technical signals show the pair could lose more ground as RSI has turned sharply lower, and 9, 11,21 DMA’s are trending south.
• Immediate resistance is located at 1.7895 (50%fib), any close above will push the pair towards 1.7943(%DMA).
• Immediate support is seen at 1.7820 (38.2%fib) and break below could take the pair towards 1.7730 (23.6% fib).
Recommendation: Good to sell round 1.7850, with stop loss of 1.7950 and target price of 1.7770
