• EUR/NZD declined on Wednesday as worries about slowing growth in China, a major export destination for the euro zone, and weak ZEW stats weighed on euro.
• Following the COVID19 outbreak, China’s export growth unexpectedly slowed in July, while imports also lost momentum, indicating a slowdown in China’s industrial sector.
• EUR/NZD could be on the verge of a deeper fall after sliding below the 5-day moving average and 38.2% fib on Wednesday.
• Technical lean bearish, RSI is trending lower at 36, momentum studies, 9, 11 DMAs falling southwards.
• Immediate resistance is located at 1.6691(38.2% fib), any close above will push the pair towards 1.6712 (5DMA)
• Support is seen at 1.6624 (23.6% fib) and break below could take the pair towards 1.6566 (Lower BB).
Recommendation: Good to sell around 1.6670, with stop loss of 1.6800 and target price of 1.6550.
