FxWirePro :EUR/NZD inches up as following ECB’s rate decision

•EUR/NZD edged higher  on Thursday   after the ECB held interest rates unchanged, aligning with market forecasts.

• The European Central Bank kept interest rates unchanged on Thursday and struck a cautiously optimistic tone on the euro zone economy. The brighter outlook tempered expectations for further policy easing, even as ongoing U.S. tariff threats continued to cloud the global trade environment..

• The European Central Bank has slashed its policy rate eight times since June 2024, having successfully reined in the inflation surge triggered by the post-COVID recovery and Russia’s 2022 invasion of Ukraine.

• On the data front, a latest survey showed euro zone business activity accelerated faster than forecast this month.

• Euro zone business activity picked up pace in July, with HCOB’s flash composite PMI hitting an 11-month high of 51.0, up from 50.6 in June.

•   Immediate resistance is located at 1.9609(Jul 23rd high), any close above will push the pair towards 1.9695 (38.2% fib).

• Support is seen at 1.9443(50% fib) and break below could take the pair towards 1.9286 (Lower BB )

Recommendation: Good to buy around 1.9480, with stop loss of 1.9420  and target price of 1.9560