• EUR/NZD strengthened on Friday as the pairs bullish allure persisted across the board post U.S. inflation data.
•The U.S. personal consumption expenditures price index rose 5.4% year-on-year in January, up from 5% in December.
• A daily close above 1.7125(23.6% fib)will further improve the technical outlook, and open the possibility of a rally towards 1.7200 level.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 58 bullish, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 1.7069 (5DMA), any close above will push the pair towards 1.7125(23.6% fib).
• Strong support is seen at 1.6995 (38.2% fib) and break below could take the pair towards 1.6943(Feb 15th low )
Recommendation: Good to buy around 1.7050, with stop loss of 1.6900 and target price of 1.7130
