• EUR/NZD initially declined on Wednesday after hotter than expected CPI data but recovered ground as global growth concerns weighed on kiwi dollar sharply.
• The pair is currently approaching resistance at 23.6%fib. A break and daily close above will accelerate further gains towards 1.6900 level.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 70 bullish, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 1.6766 (23.6%fib), any close above will push the pair towards 1.6913(Higher BB).
• Strong support is seen at 1.6774 (5DMA) and break below could take the pair towards 1.6543 (38.2%fib).
Recommendation: Good to buy around 1.6750 with stop loss of 1.6630 and target price of 1.6900
