• EUR/NZD edged lower on Monday as investors are adopting a cautious stance as they await signals from upcoming data releases.
• The U.S. and European Union signed an agreement earlier this week to reduce U.S. tariffs to 15%, concluding weeks of negotiations.
• On the data front, euro zone manufacturing activity expanded in August for the first time since mid-2022 due to a surge in domestic demand and output.
• Looking ahead, The euro zone releases unemployment, the August flash HICP, producer prices, retail sales and data and the third estimate of Q2 GDP.
• Investors also geared up for this week's U.S. jobs report, which could sway expectations for the Federal Reserve's next policy move at its meeting later this month..
• Technical are favouring bullish sentiment as RSI is at 58 and the pair is trading above 5,9 SMAs.
• Immediate resistance is located at 2.0049 (23.6% fib), any close above will push the pair towards 2.0110(Higher BB)
• Support is seen at 1.9772(SMS 20) and break below could take the pair towards 1.9657(38.2% fib)
Recommendation: Good to buy around 1.9800, with stop loss of 1.9760 and target price of 1.9900
