• Fxwirepro :eur/nzd attracts buying interest, 50 DMA eyed

    Source: FxWire Pro - Technicals / 24 Jun 2020 12:16:49   America/New_York

    • EUR/NZD rose higher on Wednesday after RBNZ struck a dovish tone by flagging it was ready to ease policy to restore an economy hit by the coronavirus pandemic.

    • The Reserve Bank of New Zealand (RBNZ) held the official cash rate at a record low of 0.25%, as widely expected.

    • It also maintained QE, the large scale asset purchase (LSAP) programme, at NZ$60 billion.

    •The pair reaches 1.7581 after extending north from 1.7375 (early Asia low). 1.8262 is the highest level since 15th June 2020.

    • Technical signals show the pair could gain more ground in the short-term as RSI has sharply turned high, daily momentum studies  5, 9  DMAs are turning   up.

    • On the upside, Immediate resistance is located at 1.7587 (38.2% fib), any close above will push the pair towards 1.7759 (50 DMA).

    • On the downside, strong support is seen at 1.7518 (21 DMA) and break below could take the pair towards 1.7375 (Daily low).

    Recommendation: Good to buy above 1.7530, with stop loss of 1.7350 and target price of 1.7640

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