FxWirePro: EUR/NZD neutral in the near-term, scope for downward resumption

• EUR/NZD initially gained  on Monday after  upbeat  Eurozone   services PMI data but gave up ground as investors seeked out risker assets like kiwi dollar  .

• The final Eurozone HCOB Services PMI for April was revised up to 53.3 from a preliminary estimate of 59.9, indicating continued expansion in the services sector. 

• A close below 38.2%fib, would add to pair’s bearish structure, opening the way for  1.7800 level

• Technical signals are bearish as RSI is heading down  at 45, daily momentum studies  5, 9 and 11 DMAs are trending down

• Immediate resistance is located at 1.7978(50%fib), any close above will push the pair towards 1.8011(Daily high).

• Immediate support is seen at 1.7874 (38.2%fib) and break below could take the pair towards 1.7837(lower BB).

Recommendation: Good to sell  around 1.7930 with stop loss of 1.8000 and target price of 1.7850