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FxWirePro:EUR/NZD extends gains, critical resistance at lies ahead

• EUR/NZD strengthened on Thursday as traders remained long as investors were optimistic about economic rebound despite coronavirus restrictions in the euro zone.

• EUR/NZD fell to daily low at 1.6908 early, before buyers returned,  the pair recovered back towards  1.6958 and was at the session high in US session.

• Any downside correction is likely to be temporary as barrier at 1.6895(38.2%fib)   is set to restricting lower move.

• Technical signals show the pair could gain more ground as RSI is at 65 bullish, and 5, 9,11 DMA’s are trending north. 

•Strong resistance is located at 1.6983 (23.6% fib), any close above will push the pair towards 1.7075 (Jan 18th high).

• Immediate support is seen at 1.6895(38.2%fib) and break below could take the pair towards 1.6824 (50% fib).

Recommendation: Good to buy around 1.6940 with stop loss of 1.6890 and target price of 1.7040 
 

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