• EUR/NZD strengthened on Monday as euro bounced against kiwi dollar following French election results but gains were limited as investors awaited for RBNZ rate call.
• All but six of 21 economists polled expected the RBNZ to raise the official cash rate (OCR) by 25 basis points (bps) to 1.25% at its Wednesday meeting.
• EUR/NZD bulls have to contend with strong resistance at 1.59723 (50%fib). If EUR/NZD longs overcome that level, tests of 1.6145 (Higher BB) is likely.
• Technical signals show the pair could gain more ground in the short-term as RSI is rising from below, daily momentum studies 5, 9 DMAs are trending up.
• Immediate resistance is located at 1.5973 (50%fib),any close above will push the pair towards 1.6145 (Higher BB ).
• Immediate support is seen at 1.5863 (5DMA) and break below could take the pair towards 1.5759 (38.2%fib )
Recommendation: Good to buy around 1.5940, with stop loss of 1.5840 and target price of 1.6100
