• EUR/NZD strengthened on Thursday as hawkish comments from ECB boosted euro across the board.
• ECB opened door to 2022 rate hike in policy turnaround, a language change in the statement from ECB helped the pair drive higher.
• The pair is currently approaching resistance at 23.6%fib. A break and daily close above will accelerate further gains towards 1.7250 level.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 72 bullish, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 1.7174 (23.6%fib), any close above will push the pair towards 1.7238(Dec 28th 2020 high).
• Strong support is seen at 1.7110 (38.2% fib) and break below could take the pair towards 1.7079(5DMA).
Recommendation: Good to buy around 1.7150 with stop loss of 1.7020 and target price of 1.7250
