• EUR/NZD strengthened on Tuesday as hawkish comments from European Central Bank supported euro.
• ECB Chief Economist Philip Lane said a record-high rise in consumer prices risked triggering "inflation psychology," which involves behaviours perpetuating inflation.
• The pair is currently approaching resistance at 1.6649(23.6%fib). A break and daily close above will accelerate further gains towards 1.6750 level.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 58 bullish, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 1.6649(23.6%fib), any close above will push the pair towards 1.6728 (Higher BB).
• Strong support is seen at 1.6576(14DMA) and break below could take the pair towards 1.6549 (21st June low ).
Recommendation: Good to buy around 1.6640 with stop loss of 1.6530 and target price of 1.6750
