FxWirePro:EUR/NZD rebounds sharply, daily chart points to a much bigger gain
• EUR/NZD rose sharply on Friday as reports of a new COVID strain that could be much transmissible more lethal drove the pair higher.
• EUR/NZD rose from 1.6330 to hit high at 1.6629 in US session, before retreating slightly
• The pair currently is approaching resistance at 23.6%fib. A break above 23.6%fib will unmask 1.6730 level in the short term.
• Technical signals show the pair could lose more ground in the short-term as RSI is at 67 bullish, daily momentum studies 9, 10 and 11 DMAs are trending up.
• Immediate resistance is located at 1.6629 ( 23.6%fib), any close above will push the pair towards 1.6730 (Oct 11th high).
• Immediate support is seen at 1.6520 (38.2%fib) and break below could take the pair towards 1.6433 (50% fib).
Recommendation: Good to buy around 1.6580, with stop loss of 1.6450 and target price of 1.6730