• EUR/NZD steadied around 1.7967 on Thursday as New Zealand dollar continued to maintained negative momentum against euro following Wednesday’s downbeat GDP data .
• Data from New Zealand showed the economy unexpectedly contracted by 0.1% in the December quarter, putting the country into technical recession.
• Markets now imply a 55% chance the Reserve Bank of New Zealand (RBNZ) will cut its 5.5% cash rate in July, with a quarter-point move more than fully priced for August.
• From a technical viewpoint, RSI is strongly bullish at 67, daily momentum studies, 5, 9 and 11 are trending up.
• Immediate resistance is located at 1.7665(38.2%fib), any close above will push the pair towards 1.7743 (50%fib).
• Immediate support is seen at 1.7556(23.6%fib) and break below could take the pair towards 1.7505(Lower BB).
Recommendation: Good to buy around 1.7960, with stop loss of 1.7800 and target price of 1.8000
