• EUR/NZD declined on Monday as concerns about the economic damage from the coronavirus outbreak on Eurozone economy weighed on euro.
• Selling pressure will remain in the short-term, only a move above 1.8341 ( 50 % fib) strong resistance would indicate the weakness in Euro has run out.
•Technically- daily, monthly RSIs, although being oversold, imply bearish momentum is intact. The MACD is also moving with a stronger negative momentum.
• On the upside, Immediate resistance is located at 1.8056 ( 5 DMA), any close above will push the pair towards 1.8173 (9 DMA).
• On the downside, strong support is seen at 1.7801 (50 DMA) and break below could take the pair towards 1.7703 (Lower BB).
Recommendation: Good to sell around 1.8100, with stop loss of 1.8400 and target price of 1.7700
