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FxWirePro: EUR/NZD uptrend looks tired, but continues to hold

• 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
 

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