• EUR/NZD strengthened on Thursday as the kiwi dollar reversed directions ahead of New Zealand infation data.
• The pair is currently approaching resistance at 5DMA. A break and daily close above will accelerate further gains towards 1.6950 level.
• 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 1.6909 (5DMA), any close above will push the pair towards 1.6922(50%fib).
• Strong support is seen at 1.6869 (38.2%fib) and break below could take the pair towards 1.6800 (23.6% fib ).
Recommendation: Good to buy around 1.6880 with stop loss of 1.6720 and target price of 1.6950
