• 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
