• EUR/NZD declined on Friday as weaker economic data ,energy shortfalls, political uncertainty in Italy weighed on euro.
• Euro zone business activity unexpectedly contracted this month due to an accelerating downturn in manufacturing and a near-stalling of service sector growth
• EUR/NZD fell to hit low at 16237 before buyers returned. Support at 1.6237(38.2%fib)holding break will accelerate downside towards1.6150.
• Technical signals show the pair could lose more ground as RSI is at 43 bearish, and 9, 11,21 DMA’s are trending south.
• Immediate resistance is located at 1.6381(5DMA), any close above will push the pair towards 1.6428(50%fib).
• Immediate support is seen at 1.6237(38.2%fib) and break below could take the pair towards 1.6181(Lower BB).
Recommendation: Good to sell round 1.6340, with stop loss of 1.6440 and target price of 1.6250
