• EUR/NZD rose sharply higher on Wednesday after kiwi slumped after the Reserve Bank of New Zealand opened the door to possible rate cuts should inflation slow as expected..
• The RBNZ, which held rates steady as widely expected, expressed confidence that inflation would return to its target band this year, spurring bets for early policy easing.
• At GMT 19:01, the pair was trading up 0.22 percent at 1.7811 after reaching daily high at 1.7828.
• 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 1.7833(Daily high), any close above will push the pair towards 1.7874(23.6%fib).
• Strong support is seen at 1.7780(38.2%fib) and break below could take the pair towards 1.7707 (50% fib )
Recommendation: Good to buy around 1.7800 with stop loss of 1.7700 and target price of 1.7880
