• EUR/NZD strengthened on Tuesday as markets position ahead of monetary policy decision from the RBNZ .
• Markets expect the Reserve Bank of New Zealand to leave the official cash rate steady at 2.25% on Wednesday..
•A Reuters poll of 29 economists conducted between May 18 and 22 found that 28 expected the RBNZ to hold on May 27.
• New Zealand inflation rose 3.1% last quarter, exceeding the RBNZ’s 1–3% target band, while elevated oil prices above $100 a barrel have added upside risks to inflation expectations.
• The RBNZ will begin releasing individual vote breakdowns from its May meeting when consensus is absent, as part of a transparency push.
• Immediate resistance is located at 1.9937(50%fib), any close above will push the pair towards 1.9961(Higher BB).
• Immediate support is seen at 1.9820(SMA 20) and break below could take the pair towards 1.9783(61.8%fib).
Recommendation: Good to buy around 1.9900 with stop loss of 1.9820 and target price of 1.9980
