• EUR/NZD dipped on Wednesday as upbeat Chinese economic data and improved risk sentiment supported kiwi dollar.
• Chinese data on retail sales and industrial output topped forecasts, boding well for continued Chinese demand for commodities.
• A close below 38.2%fib, would add to pairs bearish structure, opening the way for a test of of 1.7831.
• Technical signals are bearish as RSI is falling, daily momentum studies 5 ,9 DMA’s are trending lower.
• Immediate resistance is located at 1.8019(50%fib ), any close above will push the pair towards 1.8050 (11DMA).
• Strong support is seen at 1.7935(38.2%fib) and break below could take the pair towards 1.7820(50%fib).
Recommendation: Good to sell around 1.8020 with stop loss of 1.8150 and target price of 1.7930
