• EUR/NZD rose on Wednesday as kiwi dollar attracted sellers after RBNZ hiked rates by 50 bps for 4th time in most aggressive tightening.
•The aggressive tone of the Reserve Bank of New Zealand's (RBNZ) statement warning of future hikes being brought forward caught some traders by surprise attracting kiwi dollar selling.
• EUR/NZD rallies above the 1.6200 ,lift stops short of key 1.6244(30 DMA )resistance zone though.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 63 bullish, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 1.6244 (30 DMA), any close above will push the pair towards 1.6315(23.6%fib).
• Strong support is seen at 1.6178 (38.2%fib) and break below could take the pair towards 1.6126 (11DMA ).
Recommendation: Good to buy around 1.6200, with stop loss of 1.6100 and target price of 1.6280
