• EUR/NZD strengthened on Wednesday as New Zealand attracted sellers after RBNZ hiked 25 bps to 5.50%.
• RBNZ central bank on Wednesday signalled it was done tightening after raising rates by 25 basis points to the highest in more than 14 years at 5.5%.
• A daily close above 1.7652 will further improve the technical outlook, and open the possibility of a rally towards 1.7700 level.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 67 bullish, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 1.7652 (Daily high), any close above will push the pair towards 1.7696 (23.6%fib).
• Strong support is seen at 1.7512 (38.2% fib) and break below could take the pair towards 1.7416 (May 15th low )
Recommendation: Good to buy around 1.7600, with stop loss of 1.7520 and target price of 1.7700
