• EUR/NZD strengthened on Thursday as traders remained long as investors were optimistic about economic rebound despite coronavirus restrictions in the euro zone.
• EUR/NZD fell to daily low at 1.6908 early, before buyers returned, the pair recovered back towards 1.6958 and was at the session high in US session.
• Any downside correction is likely to be temporary as barrier at 1.6895(38.2%fib) is set to restricting lower move.
• Technical signals show the pair could gain more ground as RSI is at 65 bullish, and 5, 9,11 DMA’s are trending north.
•Strong resistance is located at 1.6983 (23.6% fib), any close above will push the pair towards 1.7075 (Jan 18th high).
• Immediate support is seen at 1.6895(38.2%fib) and break below could take the pair towards 1.6824 (50% fib).
Recommendation: Good to buy around 1.6940 with stop loss of 1.6890 and target price of 1.7040
