• EUR/NZD gained modestly on Thursday as weakness in commodities prices weighed on risk sentiment
• Investor focus has shifted to Friday’s U.S. CPI report, with inflation expected at 2.5% year-on-year.
• The data will be crucial in shaping near-term policy expectations for the Federal Reserve, particularly regarding the timing and pace of potential interest rate adjustments.
• In Europe, flash Q4 employment and GDP figures are also due, with forecasts pointing to modest growth of 0.1% quarter-on-quarter in employment and 0.3% in economic output.
• These releases will offer insight into the strength of the Eurozone economy and its resilience amid global uncertainty
• Immediate resistance is located at 1.9780 (SMA20), any close above will push the pair towards 1.9827(38.2%fib).
• Strong support is seen at 1.9544 (23.6%fib) and break below could take the pair towards 1.9376(Lower BB).
Recommendation: Good to sell around 1.9700, with stop loss of 1.9780 and target price of 1.9590
