• EUR/NZD initially dipped but recovered ground on Wednesday as investors digested rate cut decision by RBNZ
• New Zealand's central bank reduced interest rates for the third time in four months and signaled the possibility of further significant cuts, including a likely 0.5 percentage point reduction in February..
• The euro erased Tuesday's losses against the kiwi dollar , the pair was last down at 0.33% at 1.7919 .
• EUR/NZD bulls confidence is running high, a test of the 38.2%fib highly seems likely.
• Immediate resistance is located at 1.7990 (38.2%fib), any close above will push the pair towards 1.8053(Higher BB).
• Immediate support is seen at 1.7900 (50%fib) and break below could take the pair towards 1.7819(61.8%fib).
Recommendation: Good to buy on dips around 1.7900, with stop loss of 1.7840 and target price of 1.7980
