FxWirePro: EUR/NZD falls to one week low with plenty more downside potential

• EUR/NZD fell on Monday as bearish sentiment persisted amid concerns over European economic growth.

• Later this week, inflation data from across Europe, including the UK and Germany, will be closely watched.

• ECB Chief Economist Philip Lane suggested the bank might ease policy further this year, but stressed the need to balance actions to prevent a recession or delay inflation control.

 • The technical outlook remains bearish and points to eventual bigger losses, fourteen-day momentum is negative.

• Immediate resistance is located at 1.8390(38.2%fib), any close above will push the pair towards 1.8483(Jan 10th high)

• Support is seen at 1.8236(50%fib) and break below could take the pair towards 1.8169(De 17thlow)

Recommendation: Good to sell  around 1.8350, with stop loss of 1.8500 and target price of 1.8200