• EUR/NZD declined on Wednesday as pair attracted seller after Euro zone and German manufacturing data slumped in October.
• Scope is growing for an eventual break under the 1.6794 (50 %fib ) level, an eventual break below 50 %fib will accelerate further downside.
• Technical signals are bearish as RSI is heading down at 40, daily momentum studies 5, 9 and 11 DMAs are trending down.
• Immediate resistance is located at 1.6909 (50DMA), any close above will push the pair towards 1.6940(38.2%fib)
• Strong support is seen at 1.6794 (50 %fib ) and break below could take the pair towards 1.6631(61.8 %fib).
Recommendation: Good to sell on rally around 1.6840, with stop loss of 1.6950 and target price of 1.6740.
