• EUR/NZD strengthened on Thursday as rising COVID-19 cases worldwide and the prospect of a looming Federal Reserve taper reduced demand for riskier currency like New Zealand dollar.
•The pair reaches 1.7160 after extending north from 1.6995(Daily low). 1.7160 is the highest level since 18th January.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 62 bullish, daily momentum studies 5, 10 and 21 DMAs are trending up.
• Immediate resistance is located at 1.7144 (23.6%fib% fib), any close above will push the pair towards 1.7187(Higher BB).
• Strong support is seen at 1.7072 (38.2% fib) and break below could take the pair towards 1.7014 (50% fib )
Recommendation: Good to buy around 1.7080, with stop loss of 1.7000 and target price of 1.7180
