• EUR/NZD strengthened on Friday as increased risk aversion and lower commodity prices weighed on kiwi dollar.
• Oil prices fell about 6% to a four-week low amid fears that rate hikes by major central banks could slow the global economy and reduce energy demand.
• The pair picked up some momentum and is approaching 1.6627 (5DMA). A close above will open up 1.6369 ( 61.8%fib).
•Technical signals are bullish as RSI is higher at 55, daily momentum studies 11, 14 and 21 DMAs are trending up.
• Immediate resistance is located at 1.6627( 5DMA), any close above will push the pair towards 1.6804(23.6%fib).
• Strong support is seen at 1.6555(38.2%fib) and break below could take the pair towards 1.6464 ( June 10th low).
Recommendation: Good to buy around 1.6600, with stop loss of 1.6450 and target price of 1.6680
