• EUR/NZD early gains faded on Monday as euro gained some traction against kiwi dollar after Eurozone services PMI data.
• The final Eurozone HCOB Services PMI for April was revised up to 53.3 from a preliminary estimate of 59.9, indicating continued expansion in the services sector.
• A close below 38.2%fib, would add to pair’s bearish structure, opening the way for 1.7800 level
• Technical signals are bearish as RSI is heading down at 45, daily momentum studies 5, 9 and 11 DMAs are trending down
• Immediate resistance is located at 1.7978(50%fib), any close above will push the pair towards 1.8011(Daily high).
• Immediate support is seen at 1.7874 (38.2%fib) and break below could take the pair towards 1.7837(lower BB).
Recommendation: Good to sell around 1.8010, with stop loss of 1.8100 and target price of 1.7900
