• EUR/NZD initially dipped on Thursday but recovered most of the ground after Fed’s Powell pushed back on rate hopes.
•Federal Reserve Chair Jerome Powell said that Fed policymakers are are not confident that interest rates are yet high enough to finish the battle with inflation.
• The pair is currently approaching resistance at 38.2%fib. A break and daily close above will accelerate further gains towards 1.8200 level.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 72 bullish, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 1.8128(38.2%fib), any close above will push the pair towards 1.82488(23.6%fib).
• Strong support is seen at 1.8067(5DMA) and break below could take the pair towards 1.8030(50%fib).
Recommendation: Good to buy around 1.8090 with stop loss of 1.7950 and target price of 1.8170
