• EUR/ NZD retreated from daily high on Thursday as markets digested the consumer price index (CPI) inflation data for January.
• Euro zone inflation eased as expected last month, data showed, but underlying price pressures fell less than forecast, likely boosting the ECB's argument that rate cuts should not be rushed.
• EUR/ NZD traded as high as 1.7772 before retreating slightly to trade at 1.7694.A rally towards 1.7850 level is possible if bulls overcome23.6%fib resistance .
• Technical signals are bullish as RSI is at 51, daily momentum studies 5, 9 and 14 DMAs are trending north.
• Immediate resistance is located at 1.7772 (23.6%fib ), any close above will push the pair towards 1.7817 (Jan 26th high).
• Strong support is seen at 1.7688 (38.2% fib) and break below could take the pair towards 1.7603 (50% fib).
Recommendation: Good to buy on dips around 1.7680, with stop loss of 1.7550 and target price of 1.7800
