• EUR/NZD rose sharply on Tuesday as kiwi dollar weakened sharply after an easing in inflation expectations trimmed some of the bets around a possible rate hike.
•Data showed on Tuesday that New Zealand's inflation forecasts fell to more than two-year lows in the first quarter, suggesting that the aggressive pace of previous rate rises was sufficient to keep prices under control.
• The pairs rise above the 50% fib has reinforced the growing bullish strength, putting focus on resistance at 1.7800 level.
• Technical signals show the pair could gain more ground as RSI is at 51 with 5, 10 and 21-day MAs in bullish alignment.
• Immediate resistance is located at 1.7701(Daily high), any close above will push the pair towards 1.7737 (38.2% fib ).
• Immediate support is seen at 1.7631 (50% fib) and break below could take the pair towards 1.7562 (Daily low).
Recommendation: Good to buy around 1.7680, with stop loss of 1.7600 and target price of 1.7800
