• EUR/NZD strengthened on Wednesday as euro received support from Tuesday's Eurozone unemployment rate data despite bearish warnings from European Central Bank (ECB) policymakers.
•Data on Tuesday showed Eurozone unemployment rate unexpectedly dropped to 6.4% in November, defying expectations of 6.5%.
• The pair is currently approaching resistance at 38.2%fib. A break and daily close above will accelerate further gains towards 1.7700 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 1.7629(38.2%fib), any close above will push the pair towards 1.7694(Higher BB).
• Strong support is seen at 1.7543(50%fib) and break below could take the pair towards 1.7469 (61.8% fib ).
Recommendation: Good to buy around 1.7610 with stop loss of 1.7500 and target price of 1.7680
