• EUR/NZD strengthened on Monday as the pair was supported by a risk-on sentiment across markets.
• Investors have also been cheered through a readout showing that German industrial production grew in September, beating analyst expectations.
• A rally towards is 1.7000 possible if EUR/NZD bulls overcome resistance at 1.6910(38.2%fib).
• Technical signals show the pair could gain more ground in the short-term as RSI is at 55 bullish, daily momentum studies 5, and 9 DMAs are trending up.
• Immediate resistance is located at 1.6910(38.2%fib), any close above will push the pair towards 1.7036 (11DMA )
• Strong support is seen at 1.6730(50%fib) and break below could take the pair towards 1.6718 (50%fib )
Recommendation: Good to buy around 1.6860 with stop loss of 1.6720 and target price of 1.7000
