• EUR/NZD initially dipped on Tuesday but recovered as upbeat risk sentiment and better than expected German Ifo data supported euro.
•Germany’s Ifo survey showed that business morale improved more than expected in May.
• EUR/NZD fell as low as 1.6905 before buyers returned and underpinned .EUR/NZD moving higher into the US afternoon and is sitting around 1.9649.
• EUR/NZD is trading above the bullishly aligned 10- and 21-DMAs and within a bull trend channel,RSIs are rising but not overbought, indicating upside momentum.
• Immediate resistance is located at 1.6968( 38.2%fib), any close above will push the pair towards 1.7000(Psychological level) .
• Strong support is seen at 1.6898 (23.6% fib ) and break below could take the pair towards 1.6879(Channel support).
Recommendation: Good to buy around 1.6920, with stop loss of 1.6850 and target price of 1.7010.
