FxWirePro: EUR/NZD sustains gains as uptrend remains strong

• EUR/NZD climbed sharply on Tuesday as risk sentiment deteriorated, weighing on the kiwi ahead of New Zealand’s key Q3 unemployment report.

• Markets have largely anticipated another 25 bps rate cut in November by RBNZ, following last month’s 50 bps easing, as sluggish growth and tepid inflation continue to weigh on sentiment..

• Investors are closely watching New Zealand’s third-quarter labor report, which is projected to show unemployment reaching a nine-year high, potentially reinforcing expectations for additional policy support.

• From a technical viewpoint, RSI  is strongly bullish at 62, daily momentum studies, 5, 10 and 14 daily  MAs all climb.

• Immediate resistance is located at 2.0426 (Higher BB), any close above will push the pair towards 2.0465(23.6%fib).

• Immediate support is seen at 2.0234 (SMA 20) and break below could take the pair towards 2.0157(38.2% fib).

Recommendation: Good to buy on dips around 2.0330 with stop loss of 2.0260 and target price of 2.0450