• EUR/NZD strengthened on Thursday as New Zealand dollar weakened on dovish expectation from the Reserve Bank of New Zealand.
• Investors anticipate a 50bps rate cut by the RBNZ in February as New Zealand's economy shows continued signs of weakness.
•EUR/NZD has seen a 1.8394 -1.8282 range on Thursday . Scope is growing for much bigger gains towards key resistance
• Technical signals show the pair could gain more ground in the short-term as RSI is at 53 bullish, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 1.8410 (38.2%fib), any close above will push the pair towards 1.8505(23.6%fib).
• Strong support is seen at 1.8312(50%fib) and break below could take the pair towards 1.8199 (61.8% fib )
Recommendation: Good to buy around 1.8360 with stop loss of 11.8200 and target price of 1.8480
