• EUR/NZD declined on Monday as euro attracted sellers after data showed German business morale deteriorated in September, falling for a fifth month in a row.
• The Ifo institute said its business climate index stood at 85.7, a decline from a revised August figure of 85.8 but above the 85.2 forecast.
• Bearish signals are increasing as the pair has fallen below the 5-DMA & 38.2%fib support.
• Technical signals show the pair could lose more ground as RSI is bearish at 30, and 9, 11,21 DMA’s are trending south.
• Immediate resistance is located at 1.7830(38.2%fib), any close above will push the pair towards 1.7909(5DMA).
• Immediate support is seen at 1.7741 (Daily low) and break below could take the pair towards 1.7692(23.6% fib).
Recommendation: Good to sell round 1.7760, with stop loss of 1.7860 and target price of 1.7660
