• EUR/NZD strengthened on Wednesday as improving economic outlook for the euro zone also lifted sentiment.
•GfK institute survey showed German consumer sentiment is set to extend its recovery heading into the new year as a result of government measures to curb rising energy costs.
• EUR/NZD has seen a 1.6730.28-1.6911 range on Wednesday, chart points to an overshoot above 1.6911 resistance.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 57 bullish, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 1.6855(50DMA), any close above will push the pair towards 1.6911 (23.6%fib).
• Strong support is seen at 1.6738(38.2% fib) and break below could take the pair towards 1.6660 (Dec 20th low ).
Recommendation: Good to buy around 1.6840, with stop loss of 1.6750 and target price of 1.6930
