• EUR/NZD initially gained on Monday but gave up most of the ground as uncertainty over the global economic growth outlook due to resurgent Delta COVID variant weighed on euro.
• Euro was also hit after an Ifo institute survey showed business morale fell unexpectedly in July on continuing supply chain worries.
• At GMT 19:54, the pair was trading up 0.04 percent at 1.6865 after reaching daily high at 1.6943.
• Technical signals are bearish as RSI is heading down at 46, daily momentum studies 11, 14 and 21 DMAs are trending down.
• Immediate resistance is located at 1.6881 ( 38.2%fib), any close above will push the pair towards 1.6910 (14DMA)
• Immediate support is seen at 1.6806 (23.6%fib ) and break below could take the pair towards 1.6775 (Lower BB).
Recommendation: Good to sell around 1.6870, with stop loss of 1.6960 and target price of 1.6800.
