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FxWirePro:EUR/NZD consolidation continues ahead of ECB meeting ,good to buy on dips

• EUR/NZD strengthened on Wednesday  as investors awaited a ECB policy meeting later this week.

• The European Central Bank (ECB) is expected to take a hawkish stance, with interest rate hikes to begin in July as traders price in 75 basis points of hikes by September.

• EUR/ NZD gains toward 1.6624. A break and daily close above 1.6649 (23.6%fib) will accelerate further gains.

• Technical signals show the pair could gain more ground in the short-term as RSI is at 61 bullish, daily momentum studies  5, 9 and 11 DMAs are trending  up.

• Immediate resistance is located at 1.6649 (23.6%fib), any close above will push the pair towards 1.6703 (Higher BB).

• Strong support is seen at 1.6528 (21DMA) and break below could take the pair towards 1.6432 (38.2%fib )

Recommendation: Good to buy around 1.6625, with stop loss of 1.6480 and target price of 1.6720

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