• 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
