• EUR/NZD strengthened on Thursday as investors assessed ECB’s rate cut prospects.
• Two key policymakers on Thursday emphasized that the ECB requires further evidence of inflation moving towards its 2% target before considering interest rate cuts .
• The ECB has held rates constant at a record high since September, but weakening growth and easing price pressures are fueling discussion of rate cuts .
• A close above 23.6%fib resistence , should trigger a new bullish phase with potential for 1.7800
• From a technical viewpoint, RSI is strongly bearish at 45, daily momentum studies, 5, 10 and 11 daily MAs are pointing lower.
• Immediate resistance is located at 1.7735 (23.6%fib), any close above will push the pair towards 1.7760(Feb 6th high).
• Immediate support is seen at 1.7763(38.2%fib) and break below could take the pair towards 1.7610(50%fib).
Recommendation: Good to buy around 1.7670 , with stop loss of 1.7600 and target price of 1.7750
