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FxWirePro: EUR/NZD intraday upside momentum strong encouraged by an increasingly hawkish ECB

• EUR/NZD strengthened   on Monday after  ECB indicated a move from negative interest rates.

• EUR/NZD advance  above 1.6500 after ECB President Christine Lagarde said in a blog post that the bank was likely to lift the euro area deposit rate out of negative territory.

• The pair is currently approaching resistance at 38.2%fib. A break and daily close above will accelerate further gains towards 1.6600 level.

• Technical signals show the pair could gain more ground in the short-term as RSI is at 58, daily momentum studies  5, 9 and 11 DMAs are trending  up. 

• Immediate resistance is located at 1.6556 (38.2%fib), any close above will push the pair towards 1.6591(10DMA).

• Strong support is seen at 1.6440 (21DMA) and break below could take the pair towards 1.6364(50%fib)

Recommendation: Good to buy around 1.6510 with stop loss of 1.6400 and target price of 1.6600
 

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