• EUR/NZD strengthened on Monday as weaker kiwi dollar benefited bulls, but the gains were capped ahead of a week full of central bank meetings
• The is pair heading towards the 23.6%fib, as near term direction of the pair is likely to be driven by current price action.
• Pair traded in 1.6287/1.6403 range and was last trading at 1.6335 in late US session.
• Technical signals are bullish as RSI is at 62, daily momentum studies 5,9 and 10 DMAs are trending up.
• Immediate resistance is located at 1.6371( 23.6%fib), any close above will push the pair towards 1.6493 (Higher BB)
• Strong support is seen at 1.6262 (5DMA ) and break below could take the pair towards 1.6185 (38.2%fib).
Recommendation: Good to buy around 1.6330, with stop loss of 1.6200 and target price of 1.6430.
