• EUR/NZD strengthened on Tuesday as euro was boosted after a survery showed German investor morale surged in February.
•The ZEW said its survey of investors’ economic sentiment showed a rise to 71.2 points from 61.8 the previous month.
• EUR/NZD initially dipped but rebounded strongly after finding support at 1.6723, rally lifts the pair towards 1.6780. A break and daily close above 1.6819 (50%fib) will accelerate further gains.
• Technical signals show the pair could gain more ground in the short-term as RSI is bullish, daily momentum studies 5 and 9 DMAs are trending up.
• Immediate resistance is located at 1.6819 (50%fib), any close above will push the pair towards 1.6914(61.8%fib).
• Strong support is seen at 1.6723 (38.2%fib) and break below could take the pair towards 1.6644(Feb 9th low ).
Recommendation: Good to buy around 1.6770, with stop loss of 1.6650 and target price of 1.6860
