• EUR/NZD eased on Monday as kiwi dollar firmed against euro after upbeat New Zealand retail sales data.
• New Zealand’s retail sales grew by 0.5% quarter-on-quarter in the second quarter, slowing from a 0.8% increase in Q1 but surpassing market expectations of a 0.2% rise.
•On an annual basis, New Zealand’s retail sales rose 2.3% in Q2, sharply up from 0.7% in Q1. The data indicates robust consumer spending, likely supported by lower interest rates, and underscores resilience in household demand despite slower quarterly growth.
• The Reserve Bank of New Zealand (RBNZ) has aggressively reduced interest rates and indicated that the easing cycle is likely to continue .
• Immediate resistance is located at 2.0067( 23.6%fib), any close above will push the pair towards 2.0114 (Higher BB)
• Strong support is seen at 1.9729(38.2%fib ) and break below could take the pair towards 1.9673(SMA 20).
Recommendation: Good to buy around 1.9800, with stop loss of 1.9700 and target price of 1.9900
