• EUR/NZD strengthened on Monday as the kiwi dollar weakened after RBNZ Governor Anna Breman cooled market expectations for rate hikes.
• RBNZ Governor Anna Breman said current tightening in financial market conditions has gone beyond the central bank’s interest rate projections.
• In her first major policy message since taking office, Breman said the November Monetary Policy Statement OCR track suggests a small chance of another near-term rate cut.
• The governor’s comments come amid renewed discussion over the long gap between the final OCR review of one year and the first review of the next.
• Immediate resistance is located at 2.0396(38.2%fib), any close above will push the pair towards 2.0667(23.6%fib).
• Immediate support is seen at 2.0312 (SMA20) and break below could take the pair towards 2.0181(50% fib).
Recommendation: Good to buy around 2.0300 with stop loss of 2.0200 and target price of 2.0380
