• EUR/NZD rose on Thursday as soft economic data and global uncertainties kept the kiwi dollar under selling pressure.
• Last Thursday's data showed New Zealand's GDP declined by 1% quarter-on-quarter in the third quarter, the outcome was way beyond the 0.2% drop forecast by the RBNZ
•The data has led investors to fully price in an outsized 50bps rate cut at the RBNZ's next meeting in February.
• A close above 23.6%fib fib resistance, will likely trigger a new bullish phase with potential for 1.8600.
• Immediate resistance is located at 1.8551(23.6%fib), any close above will push the pair towards 1.8592(Higher BB)
• Strong support is seen at 1.8400 (38.2%fib ) and break below could take the pair towards 1.8279 (50%fib).
Recommendation: Good to buy around 1.8500, with stop loss of 1.8420 and target price of 1.8600
