FxWirePro:EUR/NZD succumbs to bearish forces after Eurozone business activity downturn deepens in December

• EUR/NZD declined on Friday   as euro attracted sellers after data showed business activity in the euro zone experienced a deeper downturn in December.

• HCOB's preliminary Composite PMI, as compiled by S&P Global, declined to 47.0 this month, down from November's 47.6. This marks the seventh consecutive month that the index has remained below the critical 50 level.

• The euro   erased Thursday’s gains against the kiwi dollar , the pair was last down  at 0.89% at  1.7543 .

• Technical signals show the pair could lose more ground as RSI has turned  bearish, and 9, 11,21 DMA’s are trending south. 

• Immediate resistance is located at 1.7589 (38.2%fib), any close above will push the pair towards 1.7624(14DMA).

• Immediate support is seen at 1.7512 (Dec 13th low) and break below could take the pair towards 1.7459 (23.6%fib).

Recommendation: Good to sell round 1.7550, with stop loss of 1.7650 and target price of 1.7430