FxWirePro : EUR/NZD trends higher, but faces potential pitfalls
• EUR/NZD initially dipped on Thursday but reversed course as broad based New Zealand dollar selling drove EUR/NZD higher.
•Kiwi dollar weakened despite upbeat New Zealand GDP data as concerns over global growth as economic news from China weighed on investors sentiment.
• EUR/NZD lifts above 1.6600 (Psychological level). A test of 1.6655 resistance zone cannot be ruled out.
• Technical signals show the pair could gain more ground in the short-term as RSI is turning up, daily momentum studies 5, and 9 DMAs are trending up.
• Immediate resistance is located at 1.6641 (14DMA), any close above will push the pair towards 1.6655 (23.6% fib).
• Strong support is seen at 1.6633 (50% fib) and break below could take the pair towards 1.6545 (61.8% fib )
Recommendation: Good to buy around 1.6630, with stop loss of 1.6550 and target price of 1.6700