• EUR/NZD strengthened on Wednesday as reassuring news on the likely severity of the Omicron coronavirus variant helped lift the pair.
• EUR/NZD gains above 1.6968 (38.2% fib). A test of 1.6767(23.6%fib) zone cannot be ruled out.
• Technical signals indicate bullish movementum, as RSI is at 62 , daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 1.6682 (Dec 2nd high), any close above will push the pair towards 1.6767(23.6%fib).
• Strong support is seen at 1.6647 (38.2% fib) and break below could take the pair towards 1.6553(50% fib).
Recommendation: Good to buy around 1.6660, with stop loss of 1.6550 and target price of 1.6740
