• EUR/NZD strengthened on Tuesday as traders positioned themselves ahead of the RBNZ’s rate meeting.
• The Reserve Bank of New Zealand is widely expected to keep interest rates unchanged at its July 9 meeting, with the median forecast now anticipating only one more 25 basis point cut this year, down from two projected in the May survey..
• The central bank has lowered rates by 225 basis points since August, easing policy following an aggressive inflation-fighting tightening cycle.
• New Zealand’s inflation eased to 2.5% in Q1, aligning with the RBNZ’s 1%–3% target range. However, heightened uncertainty around future price pressures is expected to keep the central bank on hold until Q2 inflation data is released on July 21.
•Technicals are favoring bullish sentiment as RSI is at 71 and the pair is trading above 5,9 &11-DMAs.
• Immediate resistance is located at 1.9587(July 7th high) any close above will push the pair towards 1.9673 (38.2%fib).
• Immediate support is seen at 1.9417 (50%fib) and break below could take the pair towards 1.9316(SMA 20).
Recommendation: Good to buy round 1.9500, with stop loss of 1.9400 and target price of 1.9580
