• EUR/NZD declined on Friday after PMI data showed euro zone business activity shrank much more than expected in July.
• Preliminary data showed a contraction in economic activity in France and Germany, while a reading of the broader bloc showed the continental economy is likely to contract this quarter.
• EUR/NZD chart has taken a turn for the worse after today's drop.Overall risk growing for a bigger drop towards 1.7750.
• Technical signals show the pair could lose more ground as RSI is bearish at 34, and 9, 11,21 DMA’s are trending south.
• Immediate resistance is located at 1.7884(38.2%fib), any close above will push the pair towards 1.7990(50%fib).
• Immediate support is seen at 1.7793 (Daily low) and break below could take the pair towards 1.7741(23.6% fib).
Recommendation: Good to sell round 1.7870, with stop loss of 1.7990 and target price of 1.7750
