• EUR/NZD declined on Tuesday as euro attracted sellers ahead of the European PMI’s release.
• Wednesday’s European PMIs will be a key catalyst for the near-term outlook in EUR/NZD, and softer-than-expected results could spark an acceleration in downside momentum for the pair.
• EUR/NZD has seen a 1.8396 -1.8247 range on Wednesday, the pair was last trading at 1.8247 at 19:30 .
• Technically RSI is trending lower with the 5, 10 & 11-day MAs in a bearish formation.
• Immediate resistance is located at 1.8329( 5DMA), any close above will push the pair towards 1.8450(23.6%fib).
• Strong support is seen at 1.8233 (38.2% fib) and break below could take the pair towards 1.8102 (Aug 10th low).
Recommendation: Good to sell around 1.8280, with stop loss of 1.8400 and target price of 1.8150
