• EUR/NZD initially gained on Friday but gave up some ground as investors shifted their focus to the upcoming policy meeting of the European Central Bank.
• Focus is on the ECB's January 25 policy meeting, where the expectation is for steady interest rates. Market attention will be on comments from ECB officials about the bank's rate outlook.
• EUR/NZD remains well above 38.2% fib support, daily close above 23.6%fib will increase the scope for much bigger gains.
• Technical signals lean bullish as RSI is at 63 , daily momentum studies 5, 10 and 21 DMAs are trending up.
• Immediate resistance is located at 1.7861 (23.6% fib), any close above will push the pair towards 1.7928 (Nov 29th high).
• Strong support is seen at 1.7766 (38.2% fib) and break below could take the pair towards 1.7689 (50% fib )
Recommendation: Good to buy around 1.7800 , with stop loss of 1.7720 and target price of 1.7880
