• EUR/NZD rally extended above 1.7400 on Thursday as sentiment for euro continued to improve after a landmark European Union deal.
• EU leaders agreed on Tuesday after a four-day summit a 750 billion euro coronavirus recovery package.
• Oversold conditions have eased after recent consolidation. Barrier at 1.7301 (23.6% fib) is likely to restrict lower move.
• Technical signals highlight upside bullish trend as daily RSI is rising, a monthly bull hammer is forming for June and EUR/AUD is trading above the 5-DMA.
• Immediate resistance is located at 1.7537 (Higher BB), any close above will push the pair towards 1.7640 (38.2% fib).
• Immediate support is seen at 1.7395 (5 DMA) and break below could take the pair towards 1.7301 (23.6% fib).
Recommendation: Good to buy on dips around 1.6400, with stop loss of 1.6270 and target price of 1.6500.
