• EUR/NZD rally extended rally above 1.6800 on Monday as kiwi dollar weakened on fears that drastic policy tightening by major central banks will tip the world into recession.
• The U.S. Federal Reserve is expected to hike rates by at least 75 basis points on Wednesday, while central banks in Britain and Switzerland are also likely to move this week.
• The pair rallies above the 1.6800 , stops short of key 1.6853 (23.6%fb) resistance zone.Break above will accerate towards 1.6880
• From a technical viewpoint, RSI is strongly bullish at 67, daily momentum studies, 5, 10 and 21 daily MAs all climb.
• Immediate resistance is located at 1.6853 (23.6%fb), any close above will push the pair towards 1.6883 (Higher BB).
• Immediate support is seen at 1.6672 (38.2%fb)and break below could take the pair towards 1.6642 (9DMA).
Recommendation: Good to buy on dips around 1.6800, with stop loss of 1.6700 and target price of 1.6880
