• EUR/NZD dipped on Tuesday as downbeat German ZEW economic sentiment indicator weighed on euro.
•The economic sentiment index fell to 22.3 points, compared with an expected 24.0, while the current conditions sentiment fell to 21.6, a 10.3 point fall, coming in well below an expected 28.5.
• EUR/NZD scope is for a collapse under major 1.6623 23.6% fibo support. Break below the 23.6% fibo would see much bigger losses in coming sessions.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 45 bearish, daily momentum studies 5, 9 and 11 DMAs are trending down.
• Immediate resistance is located at 1.6651 (5DMA), any close above will push the pair towards 1.6708 (38.2%fib).
• Strong support is seen at 1.6623 (23.6%fib) and break below could take the pair towards 1.6584 (Lower BB )
Recommendation: Good to sell around 1.6640, with stop loss of 1.6720 and target price of 1.6550
