• EUR/NZD strengthened on Tuesday as kiwi dollar weakened after comments by RBNZ Assistant Governor reduced market expectations of a big rate hike.
•The Reserve Bank of New Zealand (RBNZ) Assistant Governor Christian Hawkes on Tuesday stressed that in times of uncertainty, a measured policy approach is appropriate.
• The pair is currently approaching resistance at 1.6761(30DMA). A break and daily close above will accelerate further gains towards 1.6778 (23.6%fib).
• Immediate resistance is located at 1.6778 (23.6%fib), any close above will push the pair towards 1.6809(Higher BB).
• Strong support is seen at 1.6716 (38.2%fib) and break below could take the pair towards 1.6665 (50%fib)
Recommendation: Good to buy around 1.6720 with stop loss of 1.6660 and target price of 1.6800
