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FxWirePro : EUR/NZD sinks to two-month low with plenty more downside potential

• EUR/NZD  declined on Wednesday  as  single currency attracted sellers on  worries that eurozone will tip into recession.

• EUR/NZD  drops below the 1.7772 (5DMA), slide halts at the 1.7703(23.6% fib) support, break below will accelerate towards  1.7600 level.

•Technical signals show the pair could lose more ground in the short-term as RSI is at 61 bearsih, daily momentum studies  5, 9 and 11 DMAs are trending  up.

• Immediate resistance is located at 1.7772(5DMA), any close above will push the pair towards 1.7828(38.2% fib).

• Strong support is seen at 1.7703(23.6% fib) and break below could take the pair towards 1.7653(Lower BB)

Recommendation: Good to sell around 1.7760, with stop loss of 1.7860 and target price of 1.7650

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