FxWirePro: EUR/ NZD heads deeper into bear territory, 23.6% fib eyed

• EUR/ NZD slipped lower  Friday as investors digested German economic data.

• Official data released on Friday showed that the number of unemployed people in Germany surpassed 3 million in January, with the unemployment rate rising to 6.6%.

• Separate data showed German inflation edged up unexpectedly in January, accelerating to 2.1% year-on-year, beating Reuters forecasts that had projected EU-harmonised inflation to remain unchanged at 2.0%.

•  On a more positive note, Germany’s gross domestic product expanded by 0.3% in the fourth quarter from the previous three months, exceeding the consensus forecast of 0.2%. On a year-on-year basis, the Statistics Office confirmed its initial estimate showing 0.2% growth.

• Immediate resistance is located at 1.9848(50% fib), any close above will push the pair towards 1.9989 (Jan 27th low).

• Immediate support is seen at 1.9564(23.6% fib) and break below could take the pair towards 1.9462(Lower BB).

• Recommendation: Good to sell around 1.9700 with stop loss of 1.9800 and target price of 1.9620