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FxWirePro:EUR/AUD downside pressure builds, key support level in focus

• EUR/NZD declined on Monday  as euro was weighed down  after business activity reports for the euro zone economy disappointed.

• A survey showed euro zone business activity contracted sharply and unexpectedly this month, as the bloc's dominant services industry flatlined while a downturn in manufacturing accelerated

• The downturn is broad-based, with Germany deepening its decline and France slipping back into contraction after a temporary Olympic boost.

• Technical signals show the pair could lose more ground as RSI has turned sharply lower, and 5, 9 DMA’s are trending south.

• Immediate resistance is located at 1.7800 (38.2%fib), any close above will push the pair towards 1.7863(9 DMA).

• Immediate support is seen at 1.7683 (23.6% fib) and break below could take the pair towards 1.7599 (Lower BB).

Recommendation: Good to sell round 1.7870, with stop loss of 1.7950 and target price of 1.7800

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