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FxWirePro: EUR/NZD chart highlights the underlying upside bias

• EUR/NZD strengthened on Monday as expectation of  dovish policy outlook from RBNZ and weaker commodity prices weighed on kiwi dollar.

•  The upcoming RBNZ meeting is unlikely to trigger a positive shift for the NZD. Market expectations for a 50 basis point rate cut reflect ongoing dovish policy trends .

• Recent RBNZ meetings have been  negative for New Zealand dollar, with even hawkish surprises yielding only brief gains.

• From a technical viewpoint, RSI  is bearish at 51, daily momentum studies, 5, 10 and 11 daily  MAs are pointing up .

• Immediate resistance is located at 1.7975(38.2%fib), any close above will push the pair towards 1.8000(Psychological level).

• Immediate support is seen at 1.7908 (50%fib) and break below could take the pair towards 1.7841(61.8%fib).

Recommendation: Good to buy   around 1.7950, with stop loss of 1.7900  and target price of 1.8050
 

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