• EUR/NZD strengthened on Tuesday as prospects of rate hike by European Central Bank boosted euro aganst weaker kiwi dollar.
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• European Central Bank is likely to hike rates by 50 basis points each in March and May to push its policy rates to about 4% by July.
• The pair currently is approaching resistance at 23.6%fib. A break above would unmask 1.6100 level in the short term.
• From a technical viewpoint, RSI is strongly bullish at 63, daily momentum studies, 5, 10 and 11 daily MAs are pointing higher.
• Immediate resistance is located at 1.7281(23.6%fib), any close above will push the pair towards 1.7313 (Higher BB).
• Immediate support is seen at 1.7266 (Daily low) and break below could take the pair towards 1.7120(38.2%fib).
Recommendation: Good to buy on dips around 1.7260 with stop loss of 1.7170 and target price of 1.7350
