• EUR/NZD rally extended towards 1.8315 on Tuesday as the pair was boosted by investor morale brightened unexpectedly in August
• ZEW's economic sentiment index rose to -12.3 points from -14.7 points in July. Analysts polled had expected sentiment to stagnate in August with a reading of -14.7..
• A rally towards is possible if EUR/NZD bulls overcome resistance at 23.6%fib.
• From a technical viewpoint, RSI is strongly bullish at 57, daily momentum studies, 5, 10 and 21 daily MAs all climb.
•Immediate resistance is located at 1.8340(23.6%fib), any close above will push the pair towards 1.8417(Higher BB).
•Immediate support is seen at 1.8282 (5DMA) and break below could take the pair towards 1.8186 (38.2%fib).
Recommendation: Good to buy on dips around 1.8300, with stop loss of 1.8220 0and target price of 1.8400.
