• EUR/NZD dipped on Thursday as rise in commodity prices and increased risk appetite boosted the commodity-price sensitive New Zealand dollar.
•Risk appetite returned to financial markets a day after the U.S. Federal Reserve kept benchmark interest rates on hold.
• EUR/NZD is approaching support 1.7985. A break and daily close will accelerate further drop towards 1.7900 level.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 49 bullish, daily momentum studies 5, 9 and 11 DMAs are trending down.
• Immediate resistance is located at 1.8089 (50%fib), any close above will push the pair towards 1.8118 (9DMA).
• Strong support is seen at 1.7985(38.2%fib) and break below could take the pair towards 1.7857 (23.6% fib )
Recommendation: Good to buy around 1.8020, with stop loss of 1.8140 and target price of 1.7930
