• EUR/NZD strengthened on Monday as increased expectation that ECB wiil raise interest rates supported euro .
• Data on Friday showed euro zone inflation surging to another record, adding to the case for the ECB to raise interest rates this month for the first time in a decade.
• The pair is currently approaching resistance at 38.2%fib. A break and daily close above will accelerate further gains towards 1.6900level.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 58 bullish, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 1.6832(38.2% fib), any close above will push the pair towards 1.6833(Higher BB).
• Strong support is seen at 1.6757(11DMA) and break below could take the pair towards 1.6686(50% fib).
Recommendation: Good to buy around 1.6780 with stop loss of 1.6700 and target price of 1.6850
