• EUR/NZD rose higher on Wednesday after RBNZ struck a dovish tone by flagging it was ready to ease policy to restore an economy hit by the coronavirus pandemic.
• The Reserve Bank of New Zealand (RBNZ) held the official cash rate at a record low of 0.25%, as widely expected.
• It also maintained QE, the large scale asset purchase (LSAP) programme, at NZ$60 billion.
•The pair reaches 1.7581 after extending north from 1.7375 (early Asia low). 1.8262 is the highest level since 15th June 2020.
• Technical signals show the pair could gain more ground in the short-term as RSI has sharply turned high, daily momentum studies 5, 9 DMAs are turning up.
• On the upside, Immediate resistance is located at 1.7587 (38.2% fib), any close above will push the pair towards 1.7759 (50 DMA).
• On the downside, strong support is seen at 1.7518 (21 DMA) and break below could take the pair towards 1.7375 (Daily low).
Recommendation: Good to buy above 1.7530, with stop loss of 1.7350 and target price of 1.7640
