• EUR/NZD initially gained on upbeat German import/export data but gave up some ground ahead RBNZ policy decision on Wednesday.
• The Reserve Bank of New Zealand is likely to scale back its tightening pace to a quarter-point rate hike on Wednesday as inflation runs hot even as the economy slows.
•The pair retreated to 1.7356 after finding resistance at 1.7398, EUR/ NZD need a break below 38.2% fib to clear assault on 1.7500 level
• Technical signals are bullish as is trending north at RSI is at 57 , daily momentum studies 5, 10 and 21 DMAs are trending up.
• Immediate resistance is located at 1.7398 (38.2% fib), any close above will push the pair towards 1.7495 (March 30th high).
• Strong support is seen at 1.7293 (20DMA) and break below could take the pair towards 1.7248 (50% fib )
Recommendation: Good to buy around 1.7350, with stop loss of 1.7250 and target price of 1.7450
