• EUR/NZD strengthened sharply on Wednesday as kiwi dollar tumbled as New Zealand's central bank slashed its benchmark rate for the first time in over 4 years.
• The Reserve Bank of New Zealand (RBNZ) wrapped up its latest policy meeting by cutting the official cash rate (OCR) by 25 basis points to 5.25%.
• A rally towards is 1.8450 possible if EUR/NZD bulls overcome resistance at 23.6%fib.
• 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 1.8380 (23.6%fib), any close above will push the pair towards 1.8459(Jul 29th high).
• Strong support is seen at 1.8207(38.2% fib) and break below could take the pair towards 1.8070(50% fib).
Recommendation: Good to buy around 1.8370 with stop loss of 1.8300 and target price of 1.8450
