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FxWirePro: EUR/NZD falls on downbeat euro zone data, plunge to test a key fibo grows

 • EUR/NZD  declined on Tuesday as euro attracted sellers after  downbeat Euro zone PMI  data stirred up recession worries.

• HCOB's flash euro zone Composite Purchasing Managers' Index (PMI), compiled by S&P Global, fell to 46.5 in October from September's 47.2, its lowest since November 2020.

• EUR/ NZD fell to  1.8116  close to the 23.6% fib. A break under 23.6% fib would unmask 1.8100 level in the short term.

• Technical signals are bearish as RSI is at 45, daily momentum studies  5, 9 and 10 DMAs are trending down. 

• Strong resistance is located at 1.8195( Oct 20th high), any close above will push the pair towards 1.8257 (23.6% fib)

• Immediate support is   at 1.8106(38.2% fib)   and break below could take the pair towards 1.7982 (50%fib).

Recommendation: Good to sell around 1.6760  , with stop loss of 1.6850  and target price of 1.8100

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