FxWirePro- Currency Strength Index (4- Hour chart)- Currency pairs to watch (USCAD and EURJPY) for the day)
FxWirePro: EUR/NZD remains bullish as rally continues
• EUR/NZD rose sharply on Tuesday as softer dollar , improved risk sentiment boosted euro against kiwi dollar.
• The Reserve Bank of New Zealand (RBNZ) is widely expected to raise its interest rate by half a point to 3.5% on Wednesday, as it fights to contain inflation.
• The pair is currently approaching resistance at 38.2%fib. A break and daily close above will accelerate further gains towards 1.6700 level.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 77 bullish, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 1.7471 (23.6%fib), any close above will push the pair towards 1.7520(30th Sep high).
• Strong support is seen at 1.7342(5DMA) and break below could take the pair towards 1.7283 (38.2% fib ).
Recommendation: Good to buy around 1.7400 with stop loss of 1.7320 and target price of 1.7480