• EUR/NZD strengthened on Tuesday as investors dumped commodity related currencies like New Zealand dollar ahead of much-anticipated Federal Reserve meeting.
• EUR/ NZD rally lifts the pair above 1.7000. A break and daily close above 1.7063 (23.6%fib) will accelerate further gains.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 60 bullish, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 1.7063 (23.6%fib), any close above will push the pair towards 1.7102 (Higher BB).
• Strong support is seen at 1.6984 (38.2%fib) and break below could take the pair towards 1.6935 (9DMA ).
Recommendation: Good to buy around 1.7020, with stop loss of 1.6930 and target price of 1.7100
