• EUR/NZD rose higher on Thursday as New Zealand dollar continued to weaken as RBNZ hiked rates by less than hawks had expected.
•The Reserve Bank of New Zealand (RBNZ) met most expectations by raising its cash rate 25 basis points to 0.75%, but speculators had been long of the kiwi in hopes of a bigger move to 1.0%.
• EUR/NZD has registered two daily above 1.6206 .Overall scope grows for much bigger gains towards the 1.6400 fibo.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 54 bullish, daily momentum studies 5, 9 DMAs are trending up.
• Immediate resistance is located at 1.6338 (50%fib), any close above will push the pair towards 1.6848(23.6% fib).
• Immediate support is seen at 1.6220(38.2%fib) and break below could take the pair towards 1.6182(23.6% fib).
Recommendation: Good to on dips around 1.6320, with stop loss of 1.6200 and target price of 1.6390
