• EUR/NZD rallied towards 3-week high on Wednesday as kiwi dollar fell further following Tuesday NZ CPI data that reinforced view the RBNZ will not be hiking rates in November.
• New Zealand's consumer inflation slowed to a two-year low in the third quarter, reducing expectations that the central bank will hike the cash rate further.
• Technical signals are bullish as RSI is at 58, daily momentum studies 5, 9 and 10 DMAs are trending up.
• Immediate resistance is located at 1.8000(38.2%fib), any close above will push the pair towards 1.8128(23.6%fib).
• Strong support is seen at 1.7916(50%fib) and break below could take the pair towards 1.7816 (50%fib).
Recommendation: Good to buy around 1.7970 with stop loss of 1.7800 and target price of 1.8070
