• EUR/NZD initially gained but gave up some of the ground as investors braced for the Reserve Bank’s interest rate decision tomorrow.
• Traders fully expect a 25 bps rate cut, while also assigning a small probability to another surprise 50 bps move, similar to October’s..
• Attention will center on the post-decision guidance as speculation grows that this could be the final rate cut of the current easing cycle.
• Meanwhile, the German economy stagnated in the third quarter of 2025 compared with the previous quarter, the statistics office said on Tuesday, confirming its preliminary reading.
• Immediate resistance is located at 2.0667(23.6%fib), any close above will push the pair towards 2.0746(Higher BB).
• Immediate support is seen at 2.0428 (SMA 20) and break below could take the pair towards 2.0324(38.2%fib).
Recommendation: Good to buy on dips around 2.0550 with stop loss of 2.0410 and target price of 2.0700
