• EUR/NZD initially dipped but recovered some ground as market awaited European Central Bank meeting on Thursday.
• Market participants largely anticipate that the European Central Bank will leave interest rates unchanged, following a series of cuts implemented earlier this year.
• Economists see the ECB’s easing cycle nearing completion, with the deposit rate at 2.0%, inflation close to target, and wage pressures softening..
• Lagarde is expected to underscore the ECB’s wait-and-see strategy, with scope for adjustments if the economy falters.
• Meanwhile, Geopolitical tensions remained elevated after Poland shot down suspected Russian drones violating its airspace.
• Immediate resistance is located at 1.9725 (38.2%fib), any close above will push the pair towards 1.9837(SMA 20).
• Immediate support is seen at 1.9623(Lower BB) and break below could take the pair towards 1.9468(50%fib).
Recommendation: Good to sell around 1.9730 , with stop loss of 1.9800 and target price of 1.9650
