• EUR/NZD eased slightly on Tuesday as investors adopted a cautious approach ahead of an anticipated European Central Bank rate cut later in the week.
• The ECB meets on Thursday and markets have fully priced in a 25 basis-point rate cut, though the policy path for the rest of this year remains more uncertain.
• On the economic front, data showed German inflation dropped to its lowest level in over three years in August, easing to 2.0%, the lowest rate since June 2021.
• The technical outlook remains bearish and points to eventual bigger losses, Fourteen-day momentum is negative, reinforcing the scope for a bigger slump
• Immediate resistance is located at 1.8008(38.2%fib), any close above will push the pair towards 1.8112(Aug 23rd high)
• Support is seen at 1.7905 (50%fib) and break below could take the pair towards 1.7785(61.8%fib)
Recommendation: Good to sell around 1.7930, with stop loss of 1.7970 and target price of 1.7830
