• EUR/NZD rose higher on Wednesday as euro was boosted by weaker New Zealand dollar and upbeat German factory data.
• German factory activity rose to a record high in March and the services sector expanded after five successive months of contractions, surveys showed on Wednesday.
• EUR/NZD lifts further above 1.6929(38.2% fib). A test of 1.7029 (23.6%fib) zone cannot be ruled out in the short term.
• Technical signals indicate bullish movementum, as RSI is at 66, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 1.6691 (Ichimuko Cloud Top), any close above will push the pair towards 1.7029 (23.6%fib).
• Strong support is seen at 1.6929(38.2% fib) and break below could take the pair towards 1.6858 (50% fib ).
Recommendation: Good to buy around 1.6930, with stop loss of 1.6850 and target price of 1.7020
