• EUR/NZD has surged sharply as kiwi dollar attracted sellers ahead of the Reserve Bank of New Zealand’s policy meeting later this week.
• The RBNZ is set to meet on Wednesday, poll shows that 60% of economists anticipate a half-point reduction in the cash rate from its current level of 5.25%.
• At GMT 19:03, the pair was trading up 0.68 percent at 1.7938 ,highest since 18th September.
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• Technical signals show the pair could gain more ground in the short-term as RSI is up by 56, daily momentum studies 5, 9,11 are trending north.
• Immediate resistance is located at 1.8019 (38.2%fib), any close above will push the pair towards 1.8114(Aug 23rd high).
• Immediate support is seen at 1.7888 (50%fib) and break below could take the pair towards 1.7768(61.8%fib).
Recommendation: Good buy around 1.7910, with stop loss of 1.7820, and target price of 1.7970
