• EUR/NZD strengthened on Tuesday as kiwi dollar fell sharply after softer than expected New Zealand CPI data.
• New Zealand CPI data reinforces view the Reserve Bank of New Zealand will significantly reduce the likelihood of any further hikes.
• Technical signals are bullish as RSI is at 55, daily momentum studies 5, 9 and 10 DMAs are trending up.
• Immediate resistance is located at 1.7958(Daily high), any close above will push the pair towards 1.8000 (23.6%fib).
• Strong support is seen at 1.7905(38.2%fib) and break below could take the pair towards 1.7816 (50%fib).
Recommendation: Good to buy around 1.7930 with stop loss of 1.7800 and target price of 1.8000
