• Fxwirepro:eur/nzd attracts buying interest after RBNZ talks sub-zero rates, key resistance under pressure

    Source: FxWire Pro - Technicals / 13 May 2020 13:05:37   America/New_York

    • EUR/NZD rose higher on Wednesday as New Zealand dollar weakened across the board after RBNZ doubled the amount of bonds it was buying and talked of sub-zero rates.

    • The pair reached 1.8080 after extending north from 1.7803. 1.8080 is the highest level since May 4th.

    • Any downside correction is likely to be temporary as barrier at 1.7638 (lower BB) is set to restricting lower move.

    • Technical signals show the pair could gain more ground in the short-term as RSI is at 53 bullish, daily momentum studies 5, 10 DMAs are turning  up. 

    • Strong resistance is located at 1.8121 (55 DMA), any close above will push the pair towards 1.8242 (Higher BB).

    • Immediate support is seen at 1.7974 (23.6% fib) and break below could take the pair towards 1.7823 (5 DMA).

    Recommendation: Good to buy around 1.7950, with stop loss of 1.7620 and target price of 1.8300 

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