FxWirePro: EUR/ NZD downside pressure builds, key support level in focus

• EUR/ NZD initially dipped but recovered some ground  as investors digested a hot U.S. jobs report and pushed back expectations for a Federal Reserve rate cut.

• U.S. employers added 130,000 jobs in January, exceeding economists’ expectations of 70,000, reinforcing the view that the Federal Reserve may delay further interest rate cuts.

• The unemployment rate fell to 4.3% in January from 4.4% in December.

• Market pricing for at least a 25-basis-point Fed rate cut at the March meeting climbed to around 20% ahead of the jobs report, but dropped back to roughly 6% afterward, according to CME’s FedWatch Tool. .

• Immediate resistance is located at 1.9787(38.2% fib), any close above will push the pair towards 2.0000 (Psychological  level).

• Immediate support is seen at 1.9500 (23.6% fib) and break below could take the pair towards 1.9443(Lower BB).

• Recommendation: Good to sell around 1.9650 with stop loss of 1.96750 and target price of 1.9580