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

EUR/NZD declined on Monday after PMI data showed euro zone business activity shrank much more than expected in July. • A survey showed the downturn in euro zone business activity deepened much more than expected in July as demand in the bloc's dominant services industry declined and factory output fell. • EUR/A NZD chart has taken a turn for the worse after todays drop.Overall risk growing for a bigger drop towards 1.7750.

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 1.7905 (5DMA), any close above will push the pair towards 1.7970(38.2%fib). • Immediate support is seen at 1.8851 (50%fib) and break below could take the pair towards 1.7739 (61.8% fib). Recommendation: Good to sell round 1.7860, with stop loss of 1.7950 and target price of 1.7800.