• EUR/NZD recovered from recent lows on Monday as kiwi dollar weakened after New Zealand kept strict lockdown to beat Delta virus.
• New Zealand extended a strict lockdown in its largest city on Monday to snuff out small outbreaks of the highly infectious Delta variant of coronavirus.
•The pair edged up 0.12% to 1.6597, having found support around 1.6566(23.6%fib). But not far from the recent 6-month low of $1.6529.
• The pair is currently approaching resistance at 1.6606 (5DMA). A break and daily close above will accelerate further gains towards 1.6650 level.
• Immediate resistance is located at 1.6606 (5DMA), any close above will push the pair towards 1.6662 (38.2%fib).
• Strong support is seen at 1.6566(23.6%fib) and break below could take the pair towards 1.6532 (Sep 10th low ).
Recommendation: Good to buy around 1.6590 with stop loss of 1.6500 and target price of 1.6650
