• EUR/NZD trimmed gains on Thursday as investors digested euro zone inflation data.
• Euro zone inflation dipped further this month, strengthening the case for the European Central Bank to start easing interest rates from record highs later this year.
• Inflation dipped to 2.7% from 3.1% in Germany, to 3.1% from 3.4% in France, and to 2.9% from 3.5% in Spain, with falls driven primarily by energy and food prices..
• Technical signals show the pair could gain more ground as RSI is at 60 bullish, and 9, 11,21 DMA’s are trending north.
• Immediate resistance is located at 1.7793(Higher BB), any close above will push the pair towards 1.7842(23.6%fib).
• Immediate support is seen at 1.7783(38.2 % fib) and break below could take the pair towards 1.7655(50 % fib).
Recommendation: Good to sell round 1.7740, with stop loss of 1.7650 and target price of 1.7820
