• EUR/NZD consolidated around 1.8800 on Thursday as investors were cautious ahead of US Jobs data.
• The pair's sharp gains have been driven by Germany's plan for a large spending increase.
• Germany's Greens party has not committed support to the plan while the AfD and Left parties are threatening legal action.
• The ECB increased its 2024 euro zone inflation forecast to 2.3% from 2.1% projected three months ago. Longer-term inflation measures also surged from 2.05% earlier this week to 2.24% by Thursday, marking a significant shift.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 75,while moving averages are trending higher.
• Immediate resistance is located at 1.8942 (23.6%fib), any close above will push the pair towards 1.89810(Higher BB).
Immediate support is seen at 1.8775(38.2% fib) and break below could take the pair towards 1.8647 (50% fib).
Recommendation: Good to buy on dips around 1.8800, with stop loss of 1.7920 and target price of 1.8880
