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• EUR/NZD strengthened on Friday as weaker equity and unease over the Chinese economy drove kiwi dollar lower against euro.
•EUR/NZD was last trading at 1.8281, up 0.24% on the day, light profit taking lead to a slight pull back
• Technical signals show the pair could gain more ground in the short-term as RSI is at 67 bullish, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 1.8327(Daily high), any close above will push the pair towards 1.8415(23.6% fib).
• Strong support is seen at 1.8200(38.2% fib) and break below could take the pair towards 1.8146 (5DMA )
Recommendation: Good to buy around 1.8260 with stop loss of 1.8130 and target price of 1.8400
