FxWirePro: EUR/NZD bulls gear up for next leg higher, eyes 2.0700 level

• EUR/NZD advanced  on Friday  as the kiwi remained on the back foot as this  weeks  downbeat New Zealand employment data has increased concerns about the New Zealand’s economic outlook.

• New Zealand’s unemployment rate climbed to a nine-year high in Q3 as firms slowed hiring amid persistent economic weakness.

• New Zealand’s economy stagnated in the first half of the year, with only a modest recovery expected amid slowing immigration and weak housing demand.

• Since August last year, the RBNZ has slashed the Official Cash Rate by 300 basis points to 2.5%, and markets anticipate one more 25 bps cut at the final meeting of the year.

• Immediate resistance is located at 2.0636 (38.2%fib), any close above will push the pair towards 2.0956(23.6%fib).

• Immediate support is seen at 2.0390 (50% fib) and break below could take the pair towards 2.0271(SMA 20).

Recommendation: Good to buy on dips around 2.0560 with stop loss of 2.0490 and target price of 2.0700