• EUR/NZD rally extended above 1.7800 on Tuesday as euro was boosted after investor sentiment in Germany improved more than expected in August.
• The ZEW economic survey of economic sentiment rose to 71.5 from 59.3 points the previous month, far exceeding a forecast for 58.0.
• Better-than-expected German ZEW data has helped the recovery from early 1.7730 lows to 1.7845, but further gains is likely to be hard fought.
• From a technical viewpoint, RSI is strongly bullish at 64, the 5, 10 and 21-day MAs remain in a bullish alignment and point higher.
• Strong resistance is located at 1.7920 (38.2% fib), any close above will push the pair towards 1.7976 (Higher BB).
• Immediate support is seen at 1.7792 (9DMA) and break below could take the pair towards 1.7721 (50%fib).
Recommendation: Good to buy on dips around 1.7820, with stop loss of 1.7680 and target price of 1.7920.
