• 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
