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FxWirePro: EUR/NZD extends rally ,critical resistance lies ahead

• EUR/NZD extended rally    on Thursday   as traders digested comments from ECB policymakers.

• European Central Bank policymakers expressed cautious optimism on Thursday that inflation was on its way back to 2% even without more rate hikes.

• The EUR/NZD is consolidating around 1.7779  ,daily break and close above  the crucial 1.7798   resistance area will take the pair towards 1.7850 level.

• From a technical viewpoint, RSI  is strongly bullish at 51, daily momentum studies, 5, 10 and 11 daily  MAs are pointing higher.

• Immediate resistance is located at 1.7798 (38.2% fib), any close above will push the pair towards 1.7895(23.6 % fib).

• Immediate support is seen at 1.7714 (50% fib)and break below could take the pair towards 1.7604 (50%fib).

Recommendation: Good to buy on dips around 1.7770, with stop loss of 1.7640 and target price of 1.7860

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