• EUR/NZD rose higher on Wednesday as continued pick up in the COVID-19 vaccine rollout in Eurozone and doubts about ECB balance sheet expansion helped boost demand for euro.
• EUR/NZD lifts further above 1.6978 (38.2% Fib). A test of 1.7077 zone cannot be ruled out.
• Technical signals indicate bullish momentum, as RSI is at 64, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 1.7042(Daily high), any close above will push the pair towards 1.7077 (23.6%fib).
• Strong support is seen at 1.6978 (38.2% Fib)and break below could take the pair towards 1.6909 (50% fib ).
Recommendation: Good to buy around 1.6970, with stop loss of 1.6900 and target price of 1.7060
