• EUR/NZD gained some ground on Tuesday as short positions were trimmed ahead of Thursday's expected rate hike by the European Central Bank and U.S inflation data later this week.
• Investors widely expect the ECB to raise interest rates by 25 basis points on Thursday, while markets are pricing in another hike by year-end and one more in 2027 despite limited appetite for further tightening.
•Market attention is turning to a series of U.S. economic reports this week, including consumer and producer price data, ahead of the Federal Reserve’s September 15-16 policy meeting.
•In geopolitics, oil rose amid concerns about explosions near Iran facilities, while worries over Houthi attacks on Saudi cities subsided. Separately, the Trump administration announced additional Iran-related sanctions.
• Immediate resistance is located at 1.9900(50%fib), any close above will push the pair towards 1.9941(Higher BB).
• Immediate support is seen at 1.9719(38.2% fib) and break below could take the pair towards 1.9679(SMA 20).
Recommendation: Good to sell around 1.9900 with stop loss of 1.9980 and target price of 1.9830
