• 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
