FxWirePro: EUR/ NZD steady but trend lower looks likely to resume

• EUR/ NZD strengthened  on Wednesday as investors digested Eurozone inflation data and waited for Thursday’s ECB rate decision.

• Eurozone inflation fell below the ECB’s 2% target in January and is projected to remain beneath that level over the coming two years.

• Eurozone annual inflation eased to 1.7% in January from 2.0% in December, Eurostat said on Wednesday, marking its lowest level since September 2024

• The European Central Bank is widely expected to hold rates steady on Thursday, though pressure to restart monetary easing could intensify in the months ahead if current trends continue.

• ECB President Christine Lagarde is likely to face questions about the dollar’s impact at her post-meeting press conference on Thursday.

• Immediate resistance is located at 1.9725(38.2% fib), any close above will push the pair towards 1.9952 (SMA 20).

• Immediate support is seen at 1.9462(Lower BB) and break below could take the pair towards 1.9362 (Lower BB).

 Recommendation: Good to sell around 1.9700, with stop loss of 1.9780 and target price of 1.9500