FxWirePro: EUR/NZD extends gains, eyes 1.7850 level

• EUR/NZD strengthened on Wednesday    as investors digested  result of  ECB’s long-awaited Operational Framework Review.

•Long-awaited Operational Framework Review showed the European Central Bank wants to wean banks off free cash but will try to do so gently enough not to upset the financial system or lending.

• A close above23.6%fib resistance  puts  1.7786 and  then 1.7850 in focus.

• Technical signals show the pair could gain more ground in the short-term as RSI is at 58 bullish, daily momentum studies  5, 9 and 11 DMAs are trending  up.

• Immediate resistance is located at 1.7798(23.6%fib), any close above will push the pair towards 1.7872 (Higher BB).

• Strong support is seen at 1.7696(38.2%fib) and break below could take the pair towards 1.7650(  Jan 25th low )

Recommendation: Good to buy around 1.7770  with stop loss of 1.7100 and target price of 1.7850