• EUR/NZD strengthened on Friday as European Central Bank's optimism on the economic outlook and upbeat eurozone PMI data supported euro .
• Flash purchasing managers’ index numbers for April came in better than expected in the euro zone and supported the view that the region’s economic recovery.
• Technically picture is also positive for EUR/NZD, as 5, 10 and 21 daily moving averages head higher and RSI in positive zone.
• Immediate resistance is located at 1.6826 (38.2%fib), any close above will push the pair towards 1.6925 (23.6 % fib).
• Immediate support is seen at 1.6750 (5 DMA) and break below could take the pair towards 1.6693 (23.6%fib).
Recommendation: Good to buy on dips around 1.6800, with stop loss of 1.6750 and target price of 1.6870.
