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

• EUR/NZD fell sharply on Thursday after the European Central Bank maintained a cautious policy stance and left interest rates unchanged.

• The European Central Bank kept interest rates unchanged on Thursday and warned that the war in Iran is driving up eurozone inflation through higher energy prices while also weighing on economic activity.

• The European Central Bank kept its deposit rate unchanged at 2%, in line with expectations and prior guidance from policymakers including President Christine Lagarde.

•  The European Central Bank   sharpened its warning over the economic fallout from the Iran conflict, highlighting that disruptions to fuel flows through the Strait of Hormuz could significantly impact the eurozone economy through higher energy costs.

• Meanwhile, Investors expect the ECB to raise the ​deposit rate ⁠three times in the coming 12 months to 2.75%.

•  Immediate resistance is located at 1.9994( SMA 20), any close above will push the pair towards 2.0049(50%fib)

• Strong  support is seen at 1.9822(38.2%fib ) and break below could take the pair towards 1.9727(Lower BB ).

Recommendation: Good  to sell around 1.9880, with stop loss of 2.0000 and target price of 1.9800