• EUR/NZD strengthened on Wednesday as investors awaited a ECB policy meeting later this week.
• The European Central Bank (ECB) is expected to take a hawkish stance, with interest rate hikes to begin in July as traders price in 75 basis points of hikes by September.
• EUR/ NZD gains toward 1.6624. A break and daily close above 1.6649 (23.6%fib) will accelerate further gains.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 61 bullish, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 1.6649 (23.6%fib), any close above will push the pair towards 1.6703 (Higher BB).
• Strong support is seen at 1.6528 (21DMA) and break below could take the pair towards 1.6432 (38.2%fib )
Recommendation: Good to buy around 1.6625, with stop loss of 1.6480 and target price of 1.6720
