• EUR/NZD rose on Monday as upbeat Euro zone factory data support euro against New Zealand dollar.
• Euro zone Manufacturing Purchasing Managers’ Index bounced to 51.8 in July from June’s 47.4.
• Any downside correction is likely to be temporary as barrier at 1.7571 (61.8% fib) is set to restricting lower move.
• Technical signals show the pair could gain more ground as RSI is at 68 bullish, and 5, 9,11 DMA’s are trending north.
• Immediate resistance is located at 1.7869 (50% fib), any close above will push the pair towards 1.7958 (June 1st High).
• Immediate support is seen at 1.7697 (5 DMA) and break below could take the pair towards 1.7571 (61.8% fib).
Recommendation: Good to buy around 1.7750, with stop loss of 1.7550 and target price of 1.7860
