• EUR/NZD strengthened on Monday as above-forecast German inflation boosted euro across the board.
•German annual inflation slowed in January but was still higher than expected and well above the European Central Bank's price stability target of 2% for the euro zone.
• EUR/NZD rally lifts the pair towards 1.7080. A break and daily close above 1.7090 resistence will accelerate further gains.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 75 bullish, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 1.7090 (Daily high), any close above will push the pair towards 1.7129 (23.6%fib).
• Strong support is seen at 1.7064 (38.2%fib) and break below could take the pair towards 1.7009(50% fib ).
Recommendation: Good to buy around 1.7060, with stop loss of 1.6950 and target price of 1.7160
