FxWirePro: EUR/NZD eases slightly as focus shifts to ECB rate decision

• 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