• EUR/NZD rallied on Wednesday as euro was boosted by economic data pointing return of growth in eurozone bloc.
• Euro zone business activity returned to growth in July, with Wednesday’s final Composite Purchasing Manager’s Index (PMI) at 54.9 in July, compared to June’s 48.5 and the flash estimate of 54.8.
• EUR/NZD bulls confidence is running high, a test of the 1.8048 (38.2% fibo) highly seem s likely.
• From a technical viewpoint, RSI is strongly bullish at 70.00, daily momentum studies, 5, 10 and 21 daily MAs all climb.
• Immediate resistance is located at 1.7883 (50%fib), any close above will push the pair towards 1.7956 (June1 st high).
• Immediate support is seen at 1.7708 (61.8% fib) and break below could take the pair towards 1.7646 (11 DMA).
Recommendation: Good to buy on dips around 1.7800, with stop loss of 1.7701 and target price of 1.9785.
