• 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
