• EUR/NZD edged lower on Thursday as investors looked ahead to U.S. economic data for clues on the Federal Reserve's next policy moves.
• Markets had come under pressure in recent days as the escalation of the Iran war lifted oil prices and amplified concerns over persistent inflation, rising government debts and tighter monetary policy.
• Euro is particularly exposed to higher oil prices due to the region's reliance on energy imports..
• The latest survey showed growth in the euro zone's dominant services industry slipped to a two-month low in August, though solid, broad-based demand kept overall private sector activity steady.
•Traders are nearly certain the European Central Bank will raise borrowing costs to 2.5% at its policy meeting next week and deliver two additional quarter-point rate hikes by mid-2027.
• Immediate resistance is located at 1.9845(Higher BB), any close above will push the pair towards 1.9890(50%fib).
• Immediate support is seen at 1.9729(38.2% fib) and break below could take the pair towards 1.9640(SMA 20).
Recommendation: Good to sell around 1.9780 with stop loss of 1.9850 and target price of 1.9700
