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FxWirePro:EUR/NZD positions for another climb, eyes 1.7100 level

• EUR/NZD strengthened on Wednesday   as investors dumped kiwi dollar after the Reserve Bank of New Zealand announced it would keep rates at 0.25%, defying expectations.

• The central bank was expected to be the first in the Asia-Pacific region to hike rates since the pandemic began, but quickly switched gears after the country put into a snap lockdown  after  new COVID 19 cases.

• EUR/ NZD rally lifts the pair above 1.7000. A break and daily close above 1.7064 (23.6%fib) will accelerate further gains.

• Technical signals show the pair could gain more ground in the short-term as RSI is at 60 bullish, daily momentum studies  5, 9 and 11 DMAs are trending  up. 

• Immediate resistance is located at 1.7064 (23.6%fib), any close above will push the pair towards 1.7090(Higher BB).

• Strong support is seen at 1.6994 (38.2%fib) and break below could take the pair towards 1.6934(50%fib).

Recommendation: Good to buy around 1.7000, with stop loss of 1.6900 and target price of 1.7100
 

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