• EUR/NZD strengthened on Tuesday as worries about the Omicron variant dampened and weaker commodities prices weighed on risk sensitive kiwi dollar.
• The pair is currently approaching resistance at 1.6722(38.2%fib). A break and daily close above will accelerate further gains towards 1.6840 level.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 62 bullish, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 1.6722(38.2%fib), any close above will push the pair towards 1.6839(23.6%fib).
• Strong support is seen at 1.6665 (5DMA) and break below could take the pair towards 1.6626 (50% fib )
Recommendation: Good to buy around 1.6680 with stop loss of 1.6620 and target price of 1.6800
