FxWirePro: EUR/NZD edges higher ahead of RBNZ rate decision

• EUR/NZD  edges higher  on Tuesday as New Zealand dollar  eased ahead of RBNZ policy  decision.

• The Reserve Bank of New Zealand (RBNZ) is widely expected to raise its official cash rate at the upcoming monetary policy meeting,. 

• Markets are firmly expecting a 25-basis-point increase, with a minority of traders also wagering on a more aggressive rate hike.

Economic indicators have continued to soften, with GDP growth slowing, business confidence fading, and housing market activity easing. At the same time, consumers remain under pressure from elevated living costs and higher mortgage repayments, supporting the view that the RBNZ's tightening cycle is nearing its peak.

• At its May meeting, the RBNZ left the Official Cash Rate unchanged at 2.25% in a closely contested 3-3 vote, with Governor Anna Breman casting the deciding vote..

• Immediate resistance is located at 2.0140 (38.2% fib), any close above will push the pair towards 2.0233(Higher BB).

• Immediate support is seen at 2.0027 (SMA20) and break below could take the pair towards 2.0008 (38.2% fib).

Recommendation: Good to buy on dips around 2.0050, with stop loss of 1.9950  and target price of 2.0150