• EUR/NZD rebounded strongly on Wednesday as bulls gained traction after surprise U.S. inflation data.
• A Labor Department report showed the Consumer Price Index(CPI) rose 0.4% on a monthly basis in March, compared with the 0.3% increase expected by economists.
• EUR/ NZD rally lifts the pair towards 1.8016(23.6%fib) resistance . A break and daily close above 23.6%fib resistence will accelerate further gains towards 1.8100 level.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 55 bullish, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 1.8016(23.6%fib), any close above will push the pair towards 1.8084 ( April 3rd high).
• Strong support is seen at 1.7897 (38.2%fib) and break below could take the pair towards 1.7829 (Lower BB )
Recommendation: Good to buy around 1.7980, with stop loss of 1.7900 and target price of 1.8100
