• EUR/NZD slipped slightly as investors traded cautiously ahead of key U.S. jobs data later this week, seeking hints on the Federal Reserve’s policy stance.
• The ECB’s decision to remain on hold signals a more cautious or neutral approach to inflation and growth in the Eurozone. In contrast, U.S. markets are anticipating possible rate cuts by the Fed in the future,
• Meanwhile, European Central Bank President Christine Lagarde played down concerns that euro-dollar would influence the ECB's policy path, though the currency dynamic remains a key focus for market participants.
• Markets broadly expect the ECB to stick to a wait-and-see approach and keep interest rates on hold for an extended period.
• Immediate resistance is located at 1.97679(38.2% fib), any close above will push the pair towards 1.9825 (SMA 20).
• Immediate support is seen at 1.9521(23.6% fib) and break below could take the pair towards 1.9459(Lower BB).
• Recommendation: Good to sell around 1.9700 with stop loss of 1.9800 and target price of 1.9650
