• EUR/NZD rose towards 1.7850 level on Thursday as kiwi dollar continued its downward trend driven by a more dovish than expected steer from the Reserve Bank of New Zealand.
• The central bank held its key rate at 5.5% as expected but indicated that rate cuts might come earlier than previously thought.
• The pair currently is approaching resistance at 23.6%fib. A break above would unmask 1.8000 level in the short term.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 65 bullish, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 1.7880(23.6%fib), any close above will push the pair towards 1.7918 (May 14th high).
• Strong support is seen at 1.7786(38.2% fib) and break below could take the pair towards 1.7704(50% fib ).
Recommendation: Good to buy around 1.7830 with stop loss of 1.7730 and target price of 1.7880
