• Fxwirepro:eur/nzd extends gains, critical resistance lies ahead

    Source: FxWire Pro - Technicals / 17 May 2020 14:23:45   America/New_York

    • EUR/NZD rose on Friday as traders remained long on optimism over the reopening of major economies.

    • EUR/NZD has seen a more impulsive move higher, breaking above 55 DMA (1.8121) to face next hurdle at 1.8346 (50% fib).

    • Any downside correction is likely to be temporary as barrier at 1.7972 (38.2 fib)  is set to restricting lower move.

    • Technical signals show the pair could gain more ground as RSI is at 60 bullish, and 5, 9,11 DMA’s are trending north. 

    • Immediate resistance is located at 1.8346 (38.2 fib), any close above will push the pair towards 1.8555 (Ichimoku Cloud Top).

    • Immediate support is seen at 1.8143 (55 DMA) and break below could take the pair towards 1.7972 (38.2 fib).

    Recommendation: Good to buy around 1.8250, with stop loss of 1.7900 and target price of 1.8410 

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