• EUR/NZD declined below 1.7900 level on Tuesday as stronger kiwi dollar and weaker German GDP data weighed on the pair.
• On the data front, the German economy contracted by 0.1% in the second quarter of 2024 compared to the previous three-month period, as reported by the statistics office on Tuesday.
• Private consumption fell by 0.2% quarter-on-quarter, while investments plunged over 2% quarter-on-quarter. However, government consumption increased by 1% quarter-on-quarter.
• The technical outlook remains bearish and points to eventual bigger losses, Fourteen-day momentum is negative, reinforcing the scope for a bigger slump
• Immediate resistance is located at 1.80290(38.2%fib), any close above will push the pair towards 1.8110(Aug 13th high)
• Support is seen at 1.7886(50%fib) and break below could take the pair towards 1.7829 (Lower BB)
Recommendation: Good to sell around 1.7900, with stop loss of 1.8000 and target price of 1.7820
