• EUR/NZD declined sharply on Monday as jtters about wider Middle East conflict attracted sellers.
• Events in the Middle East is hurting risk appetite, spiralling violence threatens to start a major new war in the Middle East.
• EUR/A NZD chart has taken a turn for the worse after todays drop.Overall risk growing for a bigger drop towards 1.7450.
• Technical signals show the pair could lose more ground as RSI is bearish at 30, and 9, 11,21 DMA’s are trending south.
• Immediate resistance is located at 1.7635(38.2%fib), any close above will push the pair towards 1.7675(5DMA).
• Immediate support is seen at 1.7549 (Daily low) and break below could take the pair towards 1.7496 (23.6% fib).
Recommendation: Good to sell round 1.7560, with stop loss of 1.7640 and target price of 1.7470
