FxWirePro: EUR/NZD retreats slightly but trend is still bullish

• 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