• EUR/NZD declined on Fridayas the pair was weighed down on falling Euro zone business activity and lingering rate hike fallout fears.
• Euro zone business activity shrank at the slowest pace in four months in December, suggesting a likely recession ahead.
• Technical signals are bearish as RSI is heading down at 47, daily momentum studies 21, 30 DMAs are trending down.
• Immediate resistance is located at 1.6689( 30 DMA), any close above will push the pair towards 1.6760(50 %fib)
• Strong support is seen at 1.6577 (38.2 %fib ) and break below could take the pair towards 1.6529(15th Dec low).
Recommendation: Good to sell around 1.6590, with stop loss of 1.6650 and target price of 1.6520
