• EUR/NZD retreated slightly on Tuesday as traders digested soft German investor sentiment data and a raft of remarks from policymakers.
• ECB officials highlighted on Tuesday that the Eurozone economy is growing faster than expected while inflation risks remain balanced, backing a stable-rate stance.
• ECB’s Frank Elderson and Croatian central bank’s Boris Vujcic, seen as moderate hawks, expressed confidence in the economic outlook, citing recent strong data supporting stable December rates.
• Meanwhile, ZEW economic research institute data showed a surprise drop in German investor sentiment in November, with the index slipping to 38.5 from 39.3.
• Markets currently assign almost no probability to a rate cut this year, but still factor in roughly a 40% chance of a final 2% deposit rate reduction by mid-2026.
• Immediate resistance is located at 2.0618 (38.2 % fib), any close above will push the pair towards 2.0704 (Higher BB).
• Support is seen at 2.0457(38.2 % fib) and break below could take the pair towards 2.0324 (50% fib).
Recommendation: Good to buy around 2.0460, with stop loss of 2.0300 and target price of 2.0700
