FxWirePro: EUR/NZD bulls gear up for next leg higher, eyes 1.7850 level

• EUR/NZD strengthened on Thursday   as investors dumped commodity related currencies like New Zealand dollar after a slew of US macro data pointed to stubborn inflation.

•The producer price index (PPI) for final demand rose 0.6% last month, above the 0.3% climb forecast by economists polled.

•Other data showed U.S. retail sales rebounded last month with a 0.6% rise, but were below the 0.8% estimate.

• EUR/ NZD rally lifts the pair above 1.7000. A break and daily close above 1.7015 (23.6%fib) will accelerate further gains.

• Technical signals show the pair could gain more ground in the short-term as RSI is at 57 bullish, daily momentum studies  5, 9 and 11 DMAs are trending  up. 

• Immediate resistance is located at 1.7805 (23.6%fib), any close above will push the pair towards 1.7867 (May 6th high).

• Strong support is seen at 1.7708 (38.2%fib) and break below could take the pair towards 1.7641(50%fib ).

Recommendation: Good to buy around 1.7770, with stop loss of 1.7700  and target price of 1.7850