• EUR/NZD strengthened on Monday after ECB indicated a move from negative interest rates.
• EUR/NZD advance above 1.6500 after ECB President Christine Lagarde said in a blog post that the bank was likely to lift the euro area deposit rate out of negative territory.
• The pair is currently approaching resistance at 38.2%fib. A break and daily close above will accelerate further gains towards 1.6600 level.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 58, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 1.6556 (38.2%fib), any close above will push the pair towards 1.6591(10DMA).
• Strong support is seen at 1.6440 (21DMA) and break below could take the pair towards 1.6364(50%fib)
Recommendation: Good to buy around 1.6510 with stop loss of 1.6400 and target price of 1.6600
