• EUR/NZD rose higher on Friday on as China growth concerns, sliding iron ore prices undermined kiwi dollar.
• The slide in the kiwi came even after the Reserve Bank of New Zealand (RBNZ) hiked cash rates by 50 basis points to 3% and projected a peak for rates of at least 4%.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 51 bullish, daily momentum studies 5, 10 and 11 DMAs are trending up.
• Immediate resistance is located at 1.6268(50% fib), any close above will push the pair towards 1.6336 (Aug 5th high).
• Strong support is seen at 1.6171 (5DMA) and break below could take the pair towards 1.6086 (38.2% fib ).
Recommendation: Good to buy around 1.6240, with stop loss of 1.6120 and target price of 1.6360
