• EUR/ NZD dipped on Monday as the pair attracted selling interest ahead of this week’s ECB meeting.
• Investors largely expect the ECB to keep interest rates unchanged and avoid providing guidance on future policy moves.
• Money markets priced the ECB deposit rate at 2.66% by December and 2.73% by February 2027, up from the current 2.25%, while fully pricing in a rate hike for September.
• On the geopolitical front, U.S. strikes on Iran entered a ninth straight day on Monday and risks to shipping through the Strait of Hormuz mounted after reports of tankers being immobilised
• Immediate resistance is located at 1.9570 (Daily high), any close above will push the pair towards 1.9672(38.2%fib)
• Support is seen at 1.9470(23.6%fib)and break below could take the pair towards 1.9432(Lower BB)
Recommendation: Good to sell around 1.9520 , with stop loss of 1.9580 and target price of 1.9450
