• EUR/NZD strengthened on Thursday as prospect of slower economic growth due to the spreading Omicron coronavirus variant in New Zealand weighed on kiwi dollar .
• The pair is currently approaching resistance at23.6% %fib. A break and daily close above will accelerate further gains towards 1.6800 level.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 59 bullish, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 1.6770 (23.6%fib), any close above will push the pair towards 1.6842 (Higher BB).
• Strong support is seen at 1.6739 (5DMA) and break below could take the pair towards 1.6726 (38.2% fib ).
Recommendation: Good to buy around 1.6750 with stop loss of 1.6670 and target price of 1.6810
