• EUR/NZD rose on Tuesday as euro was boosted by weaker New Zealand dollar and upbeat Eurozone PMI data.
• Business activity in the eurozone picked up this month despite surging inflation driven by supply chain disruptions, rising energy costs and higher wages.
• A daily EUR/NZD close above the 50% fib at 1.6297 will further improve the bullish outlook, and open the possibility of a rally towards 1.6400.
• From a technical viewpoint, RSI is bullish, daily momentum studies, 5, 10 and 11 daily MAs are pointing higher.
• Immediate resistance is located at 1.6255 (Daily high), any close above will push the pair towards 1.6297 (50% fib).
• Immediate support is seen at 1.6155 (5DMA) and break below could take the pair towards 1.6092(23.6%fib).
Recommendation: Good to buy on dips around 1.6240, with stop loss of 1.6160 and target price of 1.6360.
