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FxWirePro: EUR/NZD extends drop, faces 20-DMA support

• EUR/NZD dipped  on Monday  after data showed Euro zone manufacturing activity contracted faster than expected  in June.

• Compiled by S&P Global, HCOB's final manufacturing Purchasing Managers' Index (PMI) fell to 43.4 from May's 44.8.

• EUR/NZD dipped to hit daily at 1.7706 low and recovered to trade last at 1.7738. Sustained break below 50%fib would target  next support at 1.7585 .

• Strong resistance is located at 1.7827 (38.2%fib), any close above will push the pair towards 1.7935 (June 39th high).

• Strong  support is seen at 1.7681 (20DMA) and break below could take the pair towards 1.7645 (50%fib ).

Recommendation: Good to sell  around 1.7740, with stop loss of 1.7850 and target price of 1.7670
 

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