• EUR/NZD declined on Friday after the data showed the bloc's dominant services industry contracted and manufacturing had sunk deeper into recession.
• S&P Global's preliminary composite euro zone purchasing managers' index, which separates growth from contraction, fell to a 10-month low of 48.1.
• The manufacturing PMI index fell to 45.2 from 46.0, confounding expectations for no change.
• Markets raised their expectations of European Central Bank rate cuts, and see a more than 50% chance of a larger-than-usual 50 basis points reduction in borrowing costs in December.
• Immediate resistance is located at 1.7892(50%fib), any close above will push the pair towards 1.7967(61.8%fib)
• Support is seen at 1.7818 (38.2%fib) and break below could take the pair towards 1.7722(23.6%fib)
Recommendation: Good to sell around 1.7870, with stop loss of 1.7950 and target price of 1.7800
