• EUR/NZD steadied around 1.8422 as investors awaited European Central Bank’s January meeting.
• The European Central Bank (ECB) is expected to cut interest rates by 25 basis points on Thursday, as inflation approaches the 2% target and economic indicators show slowing growth..
• The deposit facility rate is expected to decrease from 3% to 2.75%, its lowest level since February 2023.
• The technical outlook remains bullish and points to eventual bigger gains, Fourteen-day momentum is positive, reinforcing the scope for a bigger gains
• Immediate resistance is located at 1.8462(38.2%fib), any close above will push the pair towards 1.8638(23.6%fib)
• Support is seen at 1.8340(50%fib) and break below could take the pair towards 1.8332(Lower BB)
Recommendation: Good to buy around 1.8400 with stop loss of 1.8300 and target price of 1.8480
