• EUR/NZD strengthened on Monday as the kiwi dollar reversed directions as recent wave of new COVID cases in Europe weighed on commodity linked kiwi dollar sharply .
• COVID concerns also weighed on oil prices, which were pushed down towards eight-week lows on worries of decreased demand.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 51 bullish, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 1.6206 (38.2%fib), any close above will push the pair towards 1.6299 (50%fib).
• Strong support is seen at 1.6142 (5DMA) and break below could take the pair towards 1.6090(23.6% fib )
Recommendation: Good to buy around 1.6100 with stop loss of 1.6000 and target price of 1.6240
