• EUR/NZD initially dipped on Friday but recovered some ground as investors adjusted positions ahead of weekend German elections.
• On the data front,HCOB's preliminary composite Eurozone PMI, compiled by S&P Global, remained steady at 50.2 in February, just above the 50 mark separating growth from contraction..
• Business activity in Germany, Europe's largest economy, showed a slight pickup, driven by stable services and reduced pressure from manufacturing, despite contracting for a second consecutive year in 2024.
• In France, the Eurozone's second-largest economy, activity dropped more than expected, with its PMI showing a sharp decline in new business and backlogs in the dominant services sector.
• The technical outlook remains bearish and points to eventual bigger drop, fourteen-day momentum is negative, reinforcing the scope for a bigger drop
• Immediate resistance is located at 1.8326(38.2%fib), any close above will push the pair towards 1.8396(Feb 19th high)
• Support is seen at 1.8180(50%fib) and break below could take the pair towards 1.8034(61.8%fib)
Recommendation: Good to sell around 1.8230 with stop loss of 1.8300 and target price of 1.8160
