• EUR/NZD initially gained on Tuesday but gave up some ground as euro ‘s early rally was dented by weak German data.
• The pair retreated from 1.8079 after data showed a larger-than-expected fall in German industrial production in September.
• A close below 38.2%fib, would add to pair’s bearish structure, opening the way for 1.7900 level
• From a technical viewpoint, RSI is bearish at 49, daily momentum studies, 11, 14 and 21 daily MAs are pointing lower.
• Immediate resistance is located at 1.8088 (11DMA), any close above will push the pair towards 1.8114(50%fib).
• Immediate support is seen at 1.8006(38.2%fib) and break below could take the pair towards 1.7871(23.6%fib).
Recommendation: Good to sell around 1.8050, with stop loss of 1.8150 and target price of 1.7930
