• EUR/NZD declined on Wednesday after weak Euro PMI data drove euro lower against kiwi dollar .
• German service PMI tumbles from 52.3 to 47.3 (51.5 forecast).Eurozone service sector 48.3 from 50.9 (50.5) forecast. Contraction of service sector follows slump in manufacturing.
• EUR/ NZD chart has taken a turn for the worse after todays drop.Overall risk growing for a bigger drop towards 1.8000.
• 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 1.8252 (38.2%fib), any close above will push the pair towards 1.8294 (5DMA).
• Immediate support is seen at 1.8163 (Daily low) and break below could take the pair towards 1.8125 (50% fib).
Recommendation: Good to sell round 1.8180, with stop loss of 1.8280 and target price of 1.8080
