• EUR/NZD strengthened on Tuesday as hawkish comments from ECB supported euro against kiwi dollar.
• EUR/NZD advanced towards 1.5000 after ECB official Klaas Knot said the central bank shouldn't rule out a 50 basis point rate hike in July.
• The pair is currently approaching resistance at 23.6%fib. A break and daily close above will accelerate further gains towards 1.6700 level.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 61 bullish, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 1.6645 (23.6%fib), any close above will push the pair towards 1.6692(May 16th high).
• Strong support is seen at 1.6511 (14DMA) and break below could take the pair towards 1.6440 (38.2%fib)
Recommendation: Good to buy around 1.6560 with stop loss of 1.6480 and target price of 1.6700
