• EUR/NZD strengthened on Thursday as kiwi dollar attracted sellers following softer than expected Q1 NZ CPI.
•The consumer price index (CPI) rose 6.7% year-on-year in the first quarter, in line with the increase in the fourth quarter. The softer than expected CPI isn't expected to deter RBNZ from hiking in May.
• Pair traded in a quiet 1.7823/1.7642 range and was last trading at 1.7759 in late US trading. .
• Technical signals are bullish as RSI is at 67, daily momentum studies 10,11 and 14 DMAs are trending up.
• Immediate resistance is located at 1.7823 ( 23.6%fib), any close above will push the pair towards 1.7868(Higher BB)
• Support is seen at 1.7700(5DMA ) and break below could take the pair towards 1.7641 (38.2%fib).
Recommendation: Good to buy around 1.7750, with stop loss of 1.7670 and target price of 1.7850
