FxWirePro: EUR/NZD neutral in the near-term, scope for downward resumption

• EUR/NZD  dipped  on Monday as investors braced for a week full of important economic data .

• Several key economic releases are due later this week, with traders closely monitoring them for indications that could shape expectations of European Central Bank (ECB) policy moves.

• Traders will be closely watching several key data releases later in the week, as they may influence expectations for European Central Bank monetary policy.

• On the economic front, euro zone industrial production rose 1.2% year-on-year in December, down from a 2.5% increase the prior month, at a time when investors are anticipating that fiscal stimulus measures are reviving the sector.

• Looking ahead, data on business activity in Germany and France will be released, while earlier in the week, markets will focus on Germany’s economic sentiment.

• Immediate resistance is located at 1.9736 (SMA20), any close above will push the pair towards 1.9791(38.2%fib).

• Strong support is seen at 1.9545 (23.6%fib) and break below could take the pair towards 1.9496(Lower BB).

Recommendation: Good to sell   around 1.9660, with stop loss of 1.9730 and target price of 1.9580