• EUR/NZD strengthened on Thursday as New Zealand dollar continued to decline for sixth consecutive day in the red .
• Deepening economic troubles in China and growing expectations of rate cuts by the Reserve Bank of New Zealand has weighed on kiwi dollar.
• On the data front, a survey showed German business morale unexpectedly fell in July amid increasing pessimism about the performance of Europe's largest economy.
• The is pair heading towards the 1.8500 level, as near term direction of the pair is likely to be driven by current price action.
• Immediate resistance is located at 1.8434( 23.6%fib), any close above will push the pair towards 1.8515(Higher BB)
• Strong support is seen at 1.8282 (38.2%fib ) and break below could take the pair towards 1.8173(50%fib).
Recommendation: Good to buy around 1.8410, with stop loss of 1.8300 and target price of 1.8500.
