• EUR/NZD advanced on Thursday after European Central Bank delivered widely expected interest rate increase.
• The ECB raised interest rates for the second time this year on Thursday, as expected, aiming to curb inflation fueled by surging energy costs linked to the Iran war.
•Thursday's hike raises the ECB's benchmark deposit rate to 2.5%, the upper end of the "neutral" range considered by policymakers to neither restrict nor stimulate economic growth
• The European Central Bank's decision to raise its key interest rate to 2.50% from 2.25% on Thursday came as little surprise, given its recent signals.
• The ECB also raised its 2026 economic growth forecast to 0.9% from 0.8% in June, while projecting average inflation of 3.0% this year and 2.5% in 2027.
• Immediate resistance is located at 2.0039(50%fib), any close above will push the pair towards 2.0183(38.2%fib).
• Immediate support is seen at 1.9903(61.8% fib) and break below could take the pair towards 1.9873(Sep 8th low).
Recommendation: Good to buy around 1.9950 with stop loss of 1.9900 and target price of 2.0050
