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FxWirePro: EUR/NZD set for increasing upside potential, 1.9800 beckons

• EUR/NZD rally extended   on Friday  as investors reacted to  intensifying trade war.

• China announced additional tariffs of 34% on all U.S. goods, starting April 10. The move added to recession concerns and intensified a global stock market rout.

• The response from other nations is now in focus. France's industry minister called for a proportionate but firm response, and said Europe remained open to negotiating a solution.

• From a technical viewpoint, RSI  is strongly bullish at 75, daily momentum studies, 5, 10 and 11 daily  MAs all climb.

• Immediate resistance is located at 1.9602 (38.2% fib), any close above will push the pair towards 1.9735(Daily high).

• Immediate support is seen at 1.9327(50% fib) and break below could take the pair towards 1.9078(61.8%fib).

Recommendation: Good to buy on dips around 1.6580, with stop loss of 1.6500 and target price of 1.9800
 

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