• EUR/NZD strengthened on Tuesday as weaker kiwi dollar benefited bulls, but gains were capped ahead of Wednesday's U.S. CPI report
• The is pair heading towards the 23.6%fib, as near term direction of the pair is likely to be driven by current price action.
• Pair traded in 1.6678/1.6799 range and was last trading at 1.6742 into the US afternoon.
• Technical signals are bullish as RSI is at 71, daily momentum studies 5,9 and 10 DMAs are trending up.
• Immediate resistance is located at 1.6787( Daily high), any close above will push the pair towards 1.6846(23.6%fib)
• Strong support is seen at 1.6652 (38.2%fib ) and break below could take the pair towards 1.6603 (5DMA).
Recommendation: Good to buy around 1.6700, with stop loss of 1.6600 and target price of 1.6830.
