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FxWirePro: EUR/NZD rebounds, critical resistance lies ahead

• EUR/NZD rose on Tuesday as euro was boosted by weaker New Zealand dollar and upbeat Eurozone PMI data.

• Business activity in the eurozone picked up this month despite surging inflation driven by supply chain disruptions, rising energy costs and higher wages.

• A daily EUR/NZD close above the 50% fib at 1.6297 will further improve the bullish outlook, and open the possibility of a rally towards 1.6400.

• From a technical viewpoint, RSI  is bullish, daily momentum studies, 5, 10 and 11 daily  MAs are pointing higher.

• Immediate resistance is located at 1.6255 (Daily high), any close above will push the pair towards 1.6297 (50% fib).

• Immediate support is seen at 1.6155 (5DMA) and break below could take the pair towards 1.6092(23.6%fib).

Recommendation: Good to buy on dips around 1.6240, with stop loss of 1.6160 and target price of 1.6360.
 

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