• EUR/NZD rose sharply on Monday as kiwi dollar weakened ahead of RBNZ policy meeting on Wednesday.
• The Reserve Bank of New Zealand (RBNZ) is anticipated to keep the Official Cash Rate (OCR) steady at 5.50%.
• The pairs rise above the 38.2% fib has reinforced the growing bullish strength, putting focus on resistance at 1.7700 level.
• Technical signals show the pair could gain more ground as RSI is at 51 with 5, 10 and 21-day MAs in bullish alignment.
• Immediate resistance is located at 1.7627(23.6% fib), any close above will push the pair towards 1.7681(Feb 16th high ).
• Immediate support is seen at 1.7525 (38.2% fib) and break below could take the pair towards 1.7451(50% fib).
Recommendation: Good to buy around 1.7560, with stop loss of 1.7600 and target price of 1.7700
