• EUR/NZD eased on Monday as investors looked for new catalyst for further dicrection.
• Investors will scrutinize Chinese industrial output and consumer spending data on Tuesday before minutes from the latest U.S. Federal Reserve meeting on Wednesday.
• The pair currently is approaching resistance at 23.6%fib . A break above would unmask 1.8400 level in the short term.
• From a technical viewpoint, RSI is strongly bullish at 65, daily momentum studies, 5, 10 and 11 daily MAs are pointing higher.
• Immediate resistance is located at 1.8342(23.6%fib), any close above will push the pair towards 1.8400 (Higher BB).
• Immediate support is seen at 1.8228(5DMA) and break below could take the pair towards 1.8201(38.2%fib).
Recommendation: Good to buy on dips around 1.8250 with stop loss of 1.8150 and target price of 1.8350
