• EUR/NZD declined on Tuesday as the latest surge in European gas prices added to worries about a recession in Eurozone.
• The rise in natural gas prices renewed concerns about the euro-zone economy and data showed that business growth in the region slowed sharply in June.
• At GMT 13:20, the pair was trading down 0.20 percent at 1.6767 after reaching daily low at 1.6705.
• Technical signals show the pair could lose more ground as RSI is turning lower, and fourteen-week momentum is negative, highlighting the underlying bearish market structure.
• Immediate resistance is located at 1.6828(38.2% fib), any close above will push the pair towards 1.6923 (Higher BB).
• Immediate support is seen at 1.6686 (21DMA) and break below could take the pair towards 1.6562 (50% fib).
Recommendation: Good to sell round 1.6750, with stop loss of 1.6850 and target price of 1.6690
