FxWirePro: EUR/NZD hits fresh 3-week highs at 1.7464, bias higher, stay long

Refer EUR/NZD chart on Trading View

• EUR/NZD hits fresh 3-week highs at 1.7464, intraday bias remains bullish.
   
• The pair is holding above 5-DMA which is immediate support at 0.7392.
   
• The single currency ticked higher after upbeat German Ifo Business climate data on Monday.
   
• Headline German business climate index rose to 103.8 in August beating consensus estimates for an uptick to 101.9.
   
• Momentum studies are bullish, Stochs and RSI are biased higher. RSI shows strength at 66 levels. 
   
• MACD is above zero levels and price action above daily cloud and major moving averages which are slopping higher.
   
• We see strong trendline resistance at 1.7470. Breakout there could see test of 78.6% Fib at 1.7695.
   
• On the flipside,  we see minor weakness on break below 5-DMA. Violation at 21-EMA support at 1.73 could see further weakness.

Support levels - 1.7393 (5-DMA), 1.73 (5W SMA and 21-EMA), 1.7220 (Aug 20 low) 

Resistance levels - 1.7470 (strong trendline resistance), 1.75, 1.7695 (78.6% Fib)

Recommendation: Good to go long on break above major trendline resistance at 1.7470, SL: 1.7280, TP: 1.76/ 1.7695 

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -32.9275 (Neutral), while Hourly NZD Spot Index was at 27.0931 (Neutral) at 0745 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.