• EUR/NZD initially gained on Tuesday but pared early gains as investors grappled with mixed U.S. inflation data.
• Pair gained up to 1.7018 then slid near 1.6939, a rally towards bigger resistance at 1.7065 is possible if bulls overcome strong resistance at 1.7023.
• From a technical viewpoint, RSI is strongly bullish at 54, daily momentum studies, 5, 10 and 11 daily MAs are pointing higher.
• Immediate resistance is located at 1.6942 (38.2%fib), any close above will push the pair towards 1.7023 (23.6%fib).
• Immediate support is seen at 1.6872 (20DMA) and break below could take the pair towards 1.6824(50%fib).
Recommendation: Good to buy on dips around 1.6940, with stop loss of 1.6860 and target price of 1.7020.
