• EUR/NZD hit the highest point since Marchth 2011 on Wednesday and is attempting to breach resistance at 1.8973 ( 23.6% fib). A decisive break closure above could generate further gains.
• Any downside correction is likely to be temporary as barrier at 1.8509 (5DMA) is set to restricting lower move.
• The pair, already trading higher on the day, extended to hit high at 1.8968, a 9 year high, it was last up 1.70% on the day.
• Technical signals show RSI is at 83.11 highly bullish , daily momentum studies 9, 10 and 11 DMAs are trending upwards.
• Immediate support is seen at 1.8699 (61.8% fib) and break below could take the pair towards 1.8515( 5 DMA).
Recommendation: Good to buy on dips around 1.8700, with stop loss of 1.8600 and target price of 1.9000.
