• EUR/ NZD dipped on Monday as energy concerns in Eurozone and weaker German data weighed on the pair.|
• Germany's Ifo Institute showed high energy prices in July and looming gas shortages weighed on business confidence in Europe's largest economy.
• Strong support is at 1.6230,A break below will encourage fresh selling and accelerate downtrend.
• Technical signals are bearish as RSI is at 39, daily momentum studies 5, 9 and 10 DMAs are trending south.
• Immediate resistance is located at 1.6318( 14DMA), any close above will push the pair towards 1.6440(38.2% fib)
• Strong support is seen at 1.6230(23.6%fib) and break below could take the pair towards 1.6150 (Lower BB).
Recommendation: Good to sell on rally around 1.6330, with stop loss of 1.6440 and target price of 1.6260
