• EUR/NZD strengthened on Friday as drop in commodity prices hurt the commodity-price sensitive New Zealand dollar.
• EUR/NZD initially dipped but found buyers at 1.6900, rally lifts the pair towards 1.6997. A break and daily close above 1.7037 (23.6%fib) will accelerate further gains.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 63 bullish, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 1.7037 (23.6%fib), any close above will push the pair towards 1.7092 (Jan 5th high).
• Strong support is seen at 1.6950 (38.2%fib) and break below could take the pair towards 1.6887 (50% fib ).
Recommendation: Good to buy around 1.6980, with stop loss of 1.6890 and target price of 1.7050
