• EUR/NZD rally extended towards 1.7980 on Wednesday as kiwi dollar slipped lower after New Zealand unemployment rate rose.
• Data released by Statistics New Zealand on Wednesday highlighted that the country's labour market remains tight with the unemployment rate climbing to 3.6% from 3.4% in the prior quarter.
• A rally towards is 1.8100 possible if EUR/NZD bulls overcome resistance at 23.6%fib.
• From a technical viewpoint, RSI is strongly bullish at 57, daily momentum studies, 5, 10 and 21 daily MAs all climb.
• Immediate resistance is located at 1.8006 (23.6%fib), any close above will push the pair towards 1.8091 (Higher BB).
• Immediate support is seen at 1.7832 (38.2% fib) and break below could take the pair towards 1.7775(21DMA).
Recommendation: Good to buy on dips around 1.7970, with stop loss of 1.7880 and target price of 1.8080.
