• EUR/NZD advanced on Thursday as investors digested European Central Bank rate decision.
• The European Central Bank kept borrowing costs on hold on Thursday but left room for more tightening in the coming months.
• The European Central Bank left its deposit rate at 2.25% while stressing that it is closely assessing the scale, duration and potential knock-on effects of the current shock.
• Markets continue to price in around 24 basis points of ECB rate hikes by September and nearly 49 basis points by December, largely unchanged from expectations before the policy decision.
• Immediate resistance is located at 1.9764(38.2% fib), any close above will push the pair towards 1.9837(SMA20).
• Immediate support is seen at 1.9597(Daily low) and break below could take the pair towards 1.9450(23.6% fib).
Recommendation: Good to s ell round 1.9760, with stop loss of 1.9800 and target price of 1.9650
