• EUR/NZD rose on Tuesday as traders remained long on optimism over this week’s European Union summit and a European Central Bank policy meeting.
• EUR/NZD rise came despite a widely-watched indicator showing investor sentiment in the euro zone’s biggest economy, Germany, worsened somewhat in July.
• Any downside correction is likely to be temporary as barrier at 1.7297 (23.6% fib) is set to restrict lower move.
• Technical signals show the pair could gain more ground as RSI is at 51 bullish, 5, 9 & 11-day MAs are in bullish alignment.
• Immediate resistance is located at 1.7487 (Daily high), any close above will push the pair towards 1.7642 (38.2% fib).
• Immediate support is seen at 1.7297 (23.6% fib) and break below could take the pair towards 1.7280 (21 DMA).
Recommendation: Good to buy around 1.7400, with stop loss of 1.7300 and target price of 1.7500
