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FxWirePro: EUR/NZD capped by the 11DMA, good to sell on rally

• EUR/NZD initially gained on Tuesday  but gave up some ground as euro ‘s early rally was dented by weak German data.

• The pair retreated from 1.8079  after data showed a larger-than-expected fall in German industrial production in September.

• A close below 38.2%fib, would add to pair’s bearish structure, opening the way for 1.7900 level

• From a technical viewpoint, RSI  is   bearish at 49, daily momentum studies, 11, 14 and 21 daily  MAs are pointing lower.

• Immediate resistance is located at 1.8088 (11DMA), any close above will push the pair towards 1.8114(50%fib).

• Immediate support is seen at 1.8006(38.2%fib) and break below could take the pair towards 1.7871(23.6%fib).

Recommendation: Good to sell  around 1.8050, with stop loss of 1.8150 and target price of 1.7930
 

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