FxWirePro- Currency Strength Index (4- Hour chart)- Currency pairs to watch (EURUSD and AUDUSD) for the day)
FxWirePro: EUR/NZD remains bullish as rally continues
• EUR/NZD rose sharply on Friday riskier commodity-led currencies like kiwi dollar fell sharply after European inflation hit a record high.
• Data showed euro zone inflation zoomed past forecasts to hit 10.0% in September, reinforcing expectations for another jumbo European Central Bank rate hike next month.
• The pair is currently approaching resistance at 38.2%fib. A break and daily close above will accelerate further gains towards 1.6700 level.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 77 bullish, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 1.7528 (23.6%fib), any close above will push the pair towards 1.7694(23.6%fib).
• Strong support is seen at 1.7368(50%fib) and break below could take the pair towards 1.7236 (61.8% fib ).
Recommendation: Good to buy around 1.7480 with stop loss of 1.7380 and target price of 1.7600