• EUR/NZD initially gained on Wednesday but gave up ground as investors digested Bank of Canada rate decision and US CPI data.
• The Bank of Canada cut its key policy rate by 50 bps to 3.25%, as anticipated, and signaled that future cuts would be more gradual.
• A Labor Department report showed that the US consumer price Index (CPI) increased by 0.3% month-over-month in November, in line with economists' forecasts.
• EUR/NZD fell to 1.7513 after hitting daily high at 1.7607. Price is contained between two fibo retrace levels 1.8217 and 1.8094
• Immediate resistance is located at 1.8217 ( 23.6%fib), any close above will push the pair towards 1.8245 (Nov 1st high)
• Strong support is seen at 1.8094(38.2 %fib ) and break below could take the pair towards 1.7987(50%fib).
Recommendation: Good to buy on dips around 1.8110 with stop loss of 1.8020 and target price of 1.8200
