• EUR/NZD rose higher on Wednesday as a sell-off in global shares dragged on risk currencies like New Zealand dollar.
•The pair reaches 1.6862 after extending north from 1.6679 (European session low). 1.6862 is the highest level since May 4th.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 56 bullish, daily momentum studies 5, 10 and 21 DMAs are trending up.
• Immediate resistance is located at 1.6873 (23.6% fib), any close above will push the pair towards 1.6900 (Psychological level).
• Strong support is seen at 1.6800 (38.2% fib) and break below could take the pair towards 1.6773(Ichimoku Cloud Base ).
Recommendation: Good to buy around 1.6810, with stop loss of 1.6730 and target price of 1.6890
