FxWirePro: EUR/ NZD capped by the 38.2%fib fib, good to sell on rally

• EUR/ NZD strengthened   on Friday   as investors monitored the escalating Iran war and digested U.S. economic data.

• Investors await the European Central Bank policy meeting next Thursday, while traders bet that surging oil prices could push the central bank to hike rates this year.

•Still, economists remain wary of monetary tightening in economies where dependence on fuel imports means surging energy costs are likely to weigh on growth.

• The Personal Consumption Expenditures (PCE) index, the Federal Reserve’s preferred inflation measure, rose 0.3% in January, matching economists’ expectations..

• At the same time, U.S. economic growth was revised down more than expected in the fourth quarter due to weaker consumer spending and business investment, according to government data released Friday.

• Immediate resistance is located at 1.9724(Daily high), any close above will push the pair towards 1.9822(38.2%fib).

• Immediate support is seen at 1.9567(23.6%fib) and break below could take the pair towards 1.9536(Lower BB).

 Recommendation: Good to sell around 1.9790 with stop loss of 1.9880  and target price of 1.9700