• EUR/NZD strengthened on Thursday as New Zealand dollars was burdened by global risk aversion on growing tensions in the Middle East.
• The kiwi has been struggling since a surprisingly low reading of domestic inflation lessened the chance of another hike in interest rates.
• Technical signals are bullish as RSI is at 63, daily momentum studies 5, 9 and 10 DMAs are trending up.
• Immediate resistance is located at 1.8140(Daily high), any close above will push the pair towards 1.8171(23.6%fib).
• Strong support is seen at 1.8041 (38.2%fib) and break below could take the pair towards 1.7987 (5DMA).
Recommendation: Good to buy around 1.8100 with stop loss of 1.8000 and target price of 1.8200
