• EUR/NZD dipped on Tuesday but downside was limited as markets adopt a cautious stance ahead of the highly-anticipated Fed meeting.
• The central bank is widely expected to cut rates by 25 basis points on Wednesday, but attention will centre on policymakers’ guidance for the path beyond December.
• Meanwhile, Bank of Canada and Swiss National Bank are expected to hold rates steady when they meet on Wednesday and Thursday, respectively.
• In Europe, investors have started to price out future rate cuts after ECB policymaker Isabel Schnabel said the central bank’s next move could be a hike, signalling a potential policy divergence from other major central banks.
• Immediate resistance is located at 2.0193(Dec 9th high), any close above will push the pair towards 2.0342(38.2fib).
• Immediate support is seen at 2.0078 (50%fib) and break below could take the pair towards 2.0009(Lower BB).
Recommendation: Good to sell around 2.0190 with stop loss of 2.0260 and target price of 2.0000
