• EUR/NZD rose higher on Wednesday concerns over China's power crunch and the Evergrande situation added to investor worries over slowing global growth weighed on kiwi dollar.
• EUR/NZD lifts above 38.2% fib. A test of 1.6935 (23.6%fib)cannot be ruled out.
• Technical signals indicate bullish movementum, as RSI is at 61, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 1.6935 (23.6%fib), any close above will push the pair towards 1.7000(Psychological level).
• Strong support is seen at 1.6862(38.2% fib) and break below could take the pair towards 1.6803 (50% fib )
Recommendation: Good to buy around 1.6880, with stop loss of 1.6800 and target price of 1.6950
