• EUR/NZD dipped on Thursday but downside was limited as investor attention shifted towards PMI figures from the Eurozone.
•The preliminary composite PMI for the European Union (EU) in September is expected to show a slight decline, moving from 46.7 to 46.5.
• A close below 50% fib support will give further momentum to bears, opening the way for a run towards 1.7850 level.
• Technical signals are bearish as RSI is lower at 43 , daily momentum studies 5, 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.7998(38.2% fib), any close above will push the pair towards 1.8043(5DMA).
• Strong support is seen at 1.7889 (50% fib) and break below could take the pair towards 1.7861(Lower BB).
Recommendation: Good to sell around 1.7970, with stop loss of 1.8190 and target price of 1.7900
