• EUR/NZD rose higher on Wednesday as weaker New Zealand dollar diverging inflation trends between the U.S. and euro zone boost demand for euro.
• EUR/NZD lifts further above 1.6932 (38.2% fib). A close above 1.7000 psychological level cannot be ruled out.
• Technical signals indicate bullish movementum, as RSI is at 58, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 1.6988 (23.6% fib), any close above will push the pair towards 1.7030 (24th May).
• Strong support is seen at 1.6932 (38.2% fib) and break below could take the pair towards 1.6911 (5DMA )
Recommendation: Good to buy around 1.6950, with stop loss of 1.6900 band target price of 1.7050
