• EUR/NZD gained traction on Tuesday as kiwi dollar weakened ahead of Reserve Bank of New Zealand rate decision.
• Markets widely anticipate that the Reserve Bank of New Zealand (RBNZ) will reduce the cash rate by 25bps at its upcoming meeting.
• In July, the central bank held rates at 3.25%, citing near-term inflation risks, but signaled readiness to ease if price pressures fell.
• Inflation came in at 2.7% last quarter, within the RBNZ’s 1–3% target range, while expectations have slightly eased.
• Technical are bullish, daily RSI is positive at 63, daily momentum studies 9 and 10 DMAs are trending up.
• Immediate resistance is located at 1.9875(Higher BB), any close above will push the pair towards 1.9982(Higher BB)
• Strong support is seen at 1.9652(50%fib) and break below could take the pair towards 1.9578(SMA 20).
Recommendation: Good to buy around 1.9700, with stop loss of 1.9630 and target price of 1.9780
