FxWirePro: EUR/NZD advances ahead of ECB meeting and US inflation data

• EUR/NZD advanced  on Wednesday   as traders keenly await the ECB meeting and crucial U.S. data later this week.

• The European Central Bank is expected to raise its key interest rate on Thursday for the second time since the U.S.-Iran war began, while signaling caution over further rate increases that could push borrowing costs high enough to restrain economic activity.

•Investors also  awaited the U.S. Consumer Price Index due on Friday for clues on the Federal Reserve's rate path.

• The prolonged conflict in the Middle East has driven oil prices higher, fueling inflation, but Eurozone data show that the increase in consumer prices is largely concentrated in energy, with core pressures showing signs of easing.

• Annual inflation in the eurozone climbed to 3.3% in August, while second-quarter growth was revised up to 0.6%. Meanwhile, manufacturing activity continued to improve in August, reinforcing signs of resilience across the euro area economy despite a slower expansion.

• Immediate resistance is located at 1.9955(Higher BB), any close above will push the pair towards 2.0023(61.8%fib).

• Immediate support is seen at 1.9847(50% fib) and break below could take the pair towards 1.9696(SMA 20).

Recommendation: Good to buy around 1.9900 with stop loss of 1.9850  and target price of 1.9980