FxWirePro:EUR/NZD downside pressure builds, key support level in focus

• EUR/NZD  dipped  further on Tuesday as worsening downturn in euro zone business outlook weighed on euro.

•Business activity readings on the euro zone worsened concerns about a deepening recession in the bloc, a survey also showed German business morale clouded over in July.

•The pair reaches 1.7890 after falling from 1.7837 (Daily high). A close above 1.7742 (50% fib), should trigger a new bearish phase with potential for 1.7650.

• Technical signals show the pair could lose more ground in the short-term as RSI is at 48 bearish, daily momentum studies  5, 10 and 21 DMAs are trending  down.

•Immediate resistance is located at 1.7834 (38.2% fib), any close above will push the pair towards 1.7868 (5DMA).

• Strong support is seen at 1.7742 (50% fib) and break below could take the pair towards 1.7659 (61.8% fib )

Recommendation: Good to sell around 1.7760  , with stop loss of 1.7860   and target price of 1.7680