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FxWirePro:EUR/NZD extends drop, critical support lies ahead

• EUR/NZD declined on Monday as traders remained short on  ahead   of upcoming ECB meeting .

•Investors moved to price in a 25 bp interest rate cut from the ECB with near-certainty at its Thursday meeting as data pointed to deteriorating euro zone activity.

• EUR/NZD has seen range 1.7896-1.7868 the pair is likely to be dipped towards 1.7800 level.

• Immediate resistance is located at 1.7997 (38.2% fib), any close above will push the pair towards 1.8063 (Oct 10th high).

• Immediate support is seen at 1.7897 (50% fib) and break below could take the pair towards 1.7810 (61.8% fib).

Recommendation: Good to sell round 1.7900, with stop loss of 1.7980 and target price of 1.7820

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