FxWirePro:EUR/NZD succumbs to bearish forces on dovish ECB guidance, good to sell on rally

• EUR/NZD declined on Monday    as dovish guidance from policymakers hurt  euro across the board.

• ECB's Centeno argued that the ECB should lower rates sooner rather than later to prevent European inflation from falling too far below the ECB's 2% objective.

• The ECB kept its key rate unchanged at a record high 4% last Thursday but sounded confident that inflation was coming under control. 

• Technical signals show the pair could lose more ground as RSI has turned  bearish, and 9, 11,21 DMA’s are trending south.

• Immediate resistance is located at 1.7750 (50%fib), any close above will push the pair towards 1.7824(Daily high).

• Immediate support is seen at 1.7666 (38.2%fib) and break below could take the pair towards 1.7578(23.6%fib).

Recommendation: Good to sell round 1.7720, with stop loss of 1.7830  and target price of 1.7610