• EUR/NZD pair traded retreated towards on Tuesday as investors remained risk averse ahead of central bank decisions and closely watched data releases.
• The possibility of a rate hike by the Bank of Japan is viewed as a close call, with the decision expected on Wednesday when the BoJ concludes its meeting.
• The Bank of England is considered more likely to cut interest rates on Thursday following a disappointing CBI report on retail sales, which has weakened the strength of sterling.
• Meanwhile, markets are betting that there is almost no chance of the Fed cutting on Wednesday, but traders still see it easing by at least 25bp in September and possibly a total of 75bp this year.
• Immediate resistance is located at 1.8329(Daily high), any close above will push the pair towards 1.8505(23.6%fib).
• Strong support is seen at 1.8308(38.2% fib) and break below could take the pair towards 1.8157(50% fib ).
Recommendation: Good to buy around 1.8310 with stop loss of 1.8200 and target price of 1.8400
