• EUR/NZD strengthened on Monday as focus turned to euro zone GDP and U.S. inflation data for more clues on economic outlook.
• Preliminary third-quarter gross domestic product (GDP) data from the Eurozone will demonstrate the impact of rising interest rates on economic activity.
• 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.
• 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 1.8240( 23.6%fib), any close above will push the pair towards 1.8315 (5th Sep high)
• Strong support is seen at 1.8137 (38.2%fib ) and break below could take the pair towards 1.8100 (21DMA).
Recommendation: Good to buy around 1.8180, with stop loss of 1.8060 and target price of 1.8270
