• EUR/NZD strengthened on Thursday as kiwi dollar continued weaken following Reserve Bank of New Zealand’s dovish hike on Wednesday.
• Reserve Bank of New Zealand that shocked markets by signalling rate hikes are over, after raising rates to an 14-year high of 5.50%.
• 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 1.7738 (Daily high), any close above will push the pair towards 1.7788 (23.6% fib).
• Strong support is seen at 1.7581(38.2% fib) and break below could take the pair towards 1.7522 (April 14th low )
Recommendation: Good to buy around 1.7700 with stop loss of 1.7620 and target price of 1.7760
