• EUR/NZD retreated from daily high on Tuesday as currency traders took some risk off the table after US manufacturing PMI data.
• EUR/NZD initially rose but dipped after hiting daily high at 1.6901. A daily close above 1.6871(23.6%fib)will accelerate further gains.
•Today's range 1.6895-1.6782 has unfolded above (38.2%fib)support.
• Technical signals show the pair could gain more ground in the short-term as RSI is bullish, daily momentum studies 5 and 9,11 DMAs are trending up.
• Immediate resistance is located at 1.6871(23.6%fib), any close above will push the pair towards 1.6963(26th May high).
• Strong support is seen 1.6809 (21DMA) and break below could take the pair towards 1.6767 (38.2%fib).
Recommendation: Good to buy around 1.6850, with stop loss of 1.6750 and target price of 1.6930
