FxWirePro: EUR/NZD extends rally after RBNZ sounds less than hawkish, room for further gains

• EUR/NZD rose sharply on Wednesday  as kiwi dollar slipped after  Reserve Bank of New Zealand (RBNZ) held rates steady and trimmed its projected path for future policy

•The  RBNZ  maintained its official cash rate at 5.5%, in line with the forecasts of most analysts. Additionally, the RBNZ reiterated that policy would need to remain restrictive.

• The pair is currently approaching resistance at 23.6%fib. A break and daily close above will accelerate further gains towards 1.7900 level.

• Technical signals show the pair could gain more ground in the short-term as RSI is at 52 bullish, daily momentum studies  5, 9 and 11 DMAs are trending  up.

• Immediate resistance is located at 1.7828(23.6%fib), any close above will push the pair towards 1.7923(Jan 22nd high).

• Strong support is seen at 1.7696(38.2%fib) and break below could take the pair towards 1.7599 (50% fib )

Recommendation: Good to buy around 1.7780 with stop loss of 1.7700 and target price of 1.7900