FxWirePro:EUR/NZD gives back chunk of early gains, eyes another drop

• EUR/NZD declined on Monday  as   soured  risk  sentiment  and soft Euro zone business growth  data weighed on euro.

• Growth in euro zone business activity stalled last month, as a sluggish expansion in the bloc's dominant services industry was compounded by a deeper downturn in the manufacturing sector

•HCOB's composite Purchasing Managers' Index (PMI) for the currency union, compiled by S&P Global   dropped to 50.2 in July from 50.9 in June.

• Todays drop has put EUR/NZD back below 38.2%fib and has put 1.8300 level in focus

• Immediate resistance is located at 1.8474 (38.2%fib), any close above will push the pair towards 1.8653 (23.6%fib).

• Immediate support is seen at 1.8302(50% fib) and break below could take the pair towards 1.81110 (61.8% fib).

Recommendation: Good to sell round 1.8450, with stop loss of 1.8650 and target price of 1.8380