FxWirePro :EUR/NZD range bound short term, primary trend still lower

20 December 2023, 01:30

• EUR/NZD traded in tight range on Tuesday as investors awaited for more catalyst for further movement despite cooling Eurozone inflation .

• Data showed that eurozone inflation dropped considerably to 2.4% year on year in November, however many analysts expect price pressures to pick up again in the coming months..

• EUR/NZD bears maintain control below the 38.2%fib support, while bulls need to clear 1.7688 50%fib level to regain momentum.

• Technicals are favouring bearish sentiment as RSI is at 40 and the pair is trading below 11 & 21-DMAs.

• Immediate resistance is located at 1.7593 (38.2%fib), any close above will push the pair towards 1.7653 (Dec 12 high).

• Strong support is seen at 1.7469 (23.6% fib) and break below could take the pair towards 1.7320 (Lower BB )

Recommendation: Good to sell around 1.7620, with stop loss of 1.7690 and target price of 1.7550