• EUR/NZD gained on Tuesday as the New Zealand dollar weakened, driven by expectations that the Reserve Bank of New Zealand will maintain its aggressive stance on policy easing.
• RBNZ has recently reduced rates by another 50 bps, bringing the cash rate to 4.25%, marking a cumulative decrease of 125 bps this year.
• Markets imply a 59% chance it will ease by another 50 basis points when it next meets in February.
• From a technical viewpoint, RSI is bullishat 51, daily momentum studies, 5, 10 and 11 daily MAs are pointing up .
• Immediate resistance is located at 1.8157(23.6%fib), any close above will push the pair towards 1.8191 (Higher BB).
• Immediate support is seen at 1.8037 (38.2%fib) and break below could take the pair towards 1.7943(50%fib).
Recommendation: Good to buy around 1.8120, with stop loss of 1.8050, and target price of 1.8200,
