• 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
