• EUR/NZD extended rally on Thursday as traders digested comments from ECB policymakers.
• European Central Bank policymakers expressed cautious optimism on Thursday that inflation was on its way back to 2% even without more rate hikes.
• The EUR/NZD is consolidating around 1.7779 ,daily break and close above the crucial 1.7798 resistance area will take the pair towards 1.7850 level.
• From a technical viewpoint, RSI is strongly bullish at 51, daily momentum studies, 5, 10 and 11 daily MAs are pointing higher.
• Immediate resistance is located at 1.7798 (38.2% fib), any close above will push the pair towards 1.7895(23.6 % fib).
• Immediate support is seen at 1.7714 (50% fib)and break below could take the pair towards 1.7604 (50%fib).
Recommendation: Good to buy on dips around 1.7770, with stop loss of 1.7640 and target price of 1.7860
