• EUR/NZD rebounded strongly on Friday as the pair attracted some buying interest following an upbeat Eurozone PMI .
• Euro zone business activity growth remained steady this month as softer expansion in services was offset by a slower contraction in manufacturing, while price pressures increased, a survey showed..
• The HCOB Flash Eurozone Composite PMI, compiled by S&P Global, held at 51.5 this month . It remained above the 50.0 level that separates growth from contraction for a 13th straight month.
•PMI data showed mixed trends across the bloc. Germany’s business activity expanded at the fastest pace in three months in January, though employment fell at the sharpest rate since November 2009, while France’s activity unexpectedly slipped back into contraction after two months of weak growth.
• The technical outlook remains bearish, fourteen-day momentum is negative, reinforcing the scope for a bigger drop
• Immediate resistance is located at 1.9929(Daily high), any close above will push the pair towards 2.0019(38.2%fib)
• Support is seen at 1.9822(23.6%fib) and break below could take the pair towards 1.9766 (Lower BB)
Recommendation: Good to sell around 1.9900 with stop loss of 1.9980 and target price of 1.9820
