• EUR/NZD rose on Monday as weaker Kiwi dollar and rising expectations of future euro zone rate hikes boosted the pair.
• Hawkish policymaker Robert Holzmann said on Saturday the ECB should raise interest rates three times this year to combat surging inflation.
• Money markets are pricing in 92 bps of ECB rate hikes by year-end from around 95 bps earlier in the session.
• Sustained break of 1.6728 ( 38.2%fib) would open the door 1.6900 (Psychological level). Close below 1.6524 (38.2%fib) is needed to undermine downside bias
• Technical signals are strongly bullish as RSI is bullish at 72, 5, 9,11 DMAs are trending up.
• Immediate resistance is located at 1.6728 ( 38.2%fib), any close above will push the pair towards 1.6832 (23rd Feb high).
• Strong support is seen at 1.6524 (38.2%fib) and break below could take the pair towards 1.6437(Daily low).
Recommendation: Good to buy around 1.6680, with stop loss of 1.6400 and target price of 1.6800
