•EUR/NZD steadied around 2.0345 on Wednesday as traders turning cautious ahead of the ECB interest rate decision.
• The European Central Bank (ECB) is widely expected to keep interest rates unchanged at its Thursday policy meeting.
• Focus is on hints about whether rates could remain steady, rise, or eventually be cut in 2026, as the ECB balances inflation risks and economic growth in the eurozone..
• Lagarde’s remarks could influence euro sentiment, market participants are particularly attentive to any language that suggests a shift in the ECB’s stance, including references to inflation trends, economic momentum, and potential tightening or easing measures.
•Immediate resistance is located at 2.0404 (Dec 16th high), any close above will push the pair towards 2.0541 (Higher BB).
•Immediate support is seen at 2.0309 (50%fib) and break below could take the pair towards 2.0283(SMA 20).
Recommendation: Good to buy around 2.0320 with stop loss of 2.0200 and target price of 2.0400
