• EUR/NZD retreated on Tuesday as markets assessed euro zone Business activity data.
• Euro zone activity lost steam at the end of 2025 as manufacturing contraction deepened and services growth eased.
• The composite PMI fell to 51.9 from 52.8 in December as manufacturing output declined again.
• Manufacturing contracted for a second month, with PMI slipping to 49.2 from 49.6, the lowest since April and below forecasts.
• Services growth slowed, with the PMI easing to 52.6 from November’s 2½-year high of 53.6, below forecasts.
• Immediate resistance is located at 2.0484(Oct 17th high), any close above will push the pair towards 2.0587(Higher BB).
• Immediate support is seen at 2.0303 (38.2% fib) and break below could take the pair towards 2.0028(50% fib).
Recommendation: Good to buy around 2.0300 with stop loss of 2.0200 and target price of 2.0380
