• EUR/NZD rose higher on Wednesday as New Zealand dollar weakened across the board after RBNZ doubled the amount of bonds it was buying and talked of sub-zero rates.
• The pair reached 1.8080 after extending north from 1.7803. 1.8080 is the highest level since May 4th.
• Any downside correction is likely to be temporary as barrier at 1.7638 (lower BB) is set to restricting lower move.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 53 bullish, daily momentum studies 5, 10 DMAs are turning up.
• Strong resistance is located at 1.8121 (55 DMA), any close above will push the pair towards 1.8242 (Higher BB).
• Immediate support is seen at 1.7974 (23.6% fib) and break below could take the pair towards 1.7823 (5 DMA).
Recommendation: Good to buy around 1.7950, with stop loss of 1.7620 and target price of 1.8300
